Hexpol AB, a leading global provider of advanced polymer compounds, has announced closure of its production site in Kennedale, Texas by the end of Q2 2025 and has divested its Muscle Shoals, Alabama facility to private investment firm Karo Ventures LLC.

The closure of the Kennedale, Texas production facility will be completed by June 2025, and Hexpol has confirmed that all production from Kennedale will be relocated to other North American facilities.

Gary Moore, President of Hexpol Compounding Americas, emphasized that the closure is not a reflection of the hard work or dedication of the employees at the Kennedale site, but rather a strategic move to improve efficiency and maintain competitiveness in the marketplace. “Both decisions are certainly not a reflection of the skills or commitment of the Kennedale and Muscle Shoals workforces. We view these decisions as necessary to maintain our competitiveness and to focus on our core business,” said Moore.

The company has stated that it will account for the costs associated with the closure in Q4 2024 and will report the transaction separately in its financial results.

In a related move, Hexpol has also finalized the divestment of its Muscle Shoals, Alabama production facility to Karo Ventures LLC, effective immediately. This facility, which produced products outside of Hexpol’s core business portfolio, had an annual turnover of approximately $7 million and had been operating at a profitability level below that of the Hexpol Group.

The divestment of the Muscle Shoals site is part of Hexpol’s ongoing effort to refocus on its core business and optimize its product offerings. Karo Ventures, the private investment firm that acquired the site, will work alongside Hexpol to ensure a seamless transition for employees, customers, and suppliers.

Hexpol’s CEO, Klas Dahlberg, reiterated the company’s commitment to maintaining a competitive edge in the market through strategic operational adjustments. "These decisions are in line with our business model to focus on our core business, to optimize our efficiency, and to support our customers most effectively," said Dahlberg.

The move to streamline operations comes at a time when global companies, including Hexpol, are increasingly focused on adapting to changing market conditions and improving operational efficiency.

About Hexpol

Hexpol AB is a global leader in the development and manufacturing of advanced polymer compounds, providing innovative solutions to a wide range of industries, including automotive, healthcare, industrial, and consumer goods. With a commitment to sustainability, efficiency, and technological advancement, Hexpol operates a network of facilities across North America, Europe, and Asia, serving customers worldwide.