Hexion Completes Canadian Proppant Manufacturing Plant Expansion

The Oilfield Technology Group (OTG) of Hexion Inc. (Hexion) today announced the completion of its resin coated proppant manufacturing plant expansion in Canada. This expansion provides a more efficient supply of proppants to service companies and operators in the oil and gas industry.

Hexion’s proppant plant located in Sturgeon County, north of Fort Saskatchewan, Alberta, Canada has significantly increased its capacity and logistics capability to efficiently service the Canadian market.

Working with their primary rail service provider, CN Rail, Hexion has expanded and redesigned the Sturgeon plant’s rail yard to accommodate over 100 rail cars. This expansion, along with the production capacity enhancements, will significantly improve logistics and allow for quicker response to market demand. Whether it’s direct shipments from the plant or through their industry-leading transloading network, Hexion has the solution to meet the specialty proppant needs in the Western Canadian Sedimentary Basin.

“This expansion increases our manufacturing and delivery capabilities to meet the needs of our customers in Canada,” said Jerry Kurinsky, Senior Vice President and General Manager, OTG. “These investments demonstrate our continued commitment to our customers as the market recovers.”

This manufacturing plant produces a variety of products such as kRT™ 100 resin coated sand. These proppants are used to stimulate microfractures within the reservoir and extend propped fracture length. They also provide all the traditional benefits of resin coated proppants such as reducing proppant flowback and creating fewer proppant fines than uncoated frac sand.

About Hexion’s Oilfield Technology Group

Hexion’s Oilfield Technology Group is a leading provider of innovative technologies for the oil and gas industry. We offer well stimulation solutions with our advanced resin coated proppants and a variety of performance additives for oilfield applications. Our products also include production chemicals such as hydrogen sulfide scavengers for crude oil and natural gas production. Hexion is committed to enhancing its industry leadership and meeting its customers' specific application needs with a total solutions approach of quality products and services. Additional information is available at www.hexion.com/oilfield.

About the Company

Based in Columbus, Ohio, Hexion Inc. is a global leader in thermoset resins. Hexion Inc. serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Hexion Inc. is controlled by investment funds affiliated with Apollo Global Management, LLC. Additional information about Hexion Inc. and its products is available at www.hexion.com.

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