Hexion Specialty Chemicals (Columbus, Ohio / USA; www.hexion.com) has agreed to purchase the adhesives and resins business of Australian explosives, chemicals and paints producer Orica (Melbourne, Victoria; www.orica.com) for an undisclosed sum. The business, with sales of USD 104m in 2005, currently employs 100 people. Hexion CEO Craig Morrison said the acquisition will strengthen the company´s Australian forestry business, provide an entry into the New Zealand market and offer opportunities for expansion in Asia-Pacific.

The Orica business manufactures formaldehyde and formaldehyde-based binding resins used primarily to produce wood panels such as particle board, medium-density fibreboard and plywood. The takeover deal includes three manufacturing facilities, at Deer Park, Victoria / Australia, and Mountview and Hornby / New Zealand.