Hexion, an Ohio based thermoset resins manufacturer, has signed a deal to divest its paint manufacturing plant in Yumbo, Colombia to a joint venture led by Master Paints & Chemical Corporation for an undisclosed price.
The paint manufacturing plant in Yumbo produces decorative paints under the Algreco brand, among others, and also private-label paints.
The Yumbo site employs nearly 150 associates and had revenue of around $15 million in 2018.
The site has resin manufacturing capacity for alkyd and water-based paints, and also asphalt production capabilities. It was operated within the forest products resins segment of Hexion.
Craig Rogerson – Chairman, President and CEO of Hexion said: “We believe the Yumbo site’s diversified manufacturing capabilities and strong track record of safe operations will serve Master Paints well going forward.
“Considering the site serves primarily a consumer-facing paint business, the transaction is consistent with our ongoing portfolio optimization as we further position the Company for profitable growth. I would like to thank our associates at the Yumbo site for their many contributions and I am confident they will have exciting opportunities ahead.”