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Looking to lead, grow, and stay ahead in the trillion-dollar global chemical industry? The Chemical Show - the #1 business podcast for the chemical industry - is your go-to resource for leadership insights, business strategies, and real-world lessons from the executives shaping the future of chemicals. Grow your knowledge, your network, and your impact.
Each week, you'll hear from executives from across the industry - from Fortune 50 to midsize to startups. You’ll hear how they're tacking today's challenges and opportunities, their origin story (what got them here!), how you can take and apply these lessons and insights to your own business and career.
We talk:
- Business Transformation
- Innovation
- Digitization of business
- Strategy
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- and so much more
Founder and host Victoria King Meyer is an expert interviewer - who brings out the best in each guest. She gained her industry experience at leading companies, including Shell, LyondellBasell and Clariant. Today, she is a high-performance coach and advisor to business leaders in chemicals and energy, as well as the host of The Chemical Show podcast, and founder of The Chemical Summit.
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Welcome to The Chemical Show, the
podcast where Chemical means business.
I'm your host, Victoria Meyer,
bringing you stories and insights
from leaders driving innovation and
growth across the chemical industry.
Each week we explore key trends,
real world challenges, and the
strategies that make an impact.
Let's get started.
Victoria: Welcome back to The Chemical
Show where Leaders Talk Business.
Today I have the opportunity to speak with
Michael Levenfeld, who is the president
and CEO at Hexion Incorporated, where
he's also the chairman of the board.
Michael has a long career in chemicals
and materials and is an innovator.
He's had a combination
of executive operational.
And entrepreneurial experience, including
by the way, holding more than a hundred
patents, this makes him number one,
just an interesting person to talk to.
Number two, really uniquely positioned
to be leading Hexion through its
transformations that it's going through.
So Michael, welcome to the Chemical Show.
Michael: Thanks for having me, Victoria.
Victoria: Absolutely.
So let's just start
with your origin story.
How did you become interested in
chemicals and materials, and how
has your career path led you to
where you are today at Hexion?
Michael: my origin story's a little
bit, little bit different, but, uh,
I think it starts with, you know,
most technology focused folks.
I was a nerd growing up.
And I wear that with a,
with a badge of honor.
Um.
My career has always been
about transforming products and
industries and, and markets.
Taking things that have existed already
and putting them together in novel or
unique ways new packages of, products
for, for respective industries.
And, um, I started my first.
Company in college, which was
a medical device company, filed
my first patent then, and then
launched, you know, successful
startups, , a few times after that.
The biggest being in the chemicals
industry, I then exited and, um, know,
then transformed my, my career into
doing strategic growth transformations
in the private equity world.
And as a business leader
with a scientist, Background.
I've been focused on transforming
industry, has been, you know, a
little bit more dated into modern,
you know, progressive organizations
with innovation and sustainability at
the heart of their growth, projects.
So, private equity is a,
is an amazing place to be.
It's a little different than
entrepreneurial areas where, you know,
you play every role when you're the first.
Person hired in the organization here.
You come in with a, with a strong balance
sheet and with a great team and the world
is, is open to you if you can align that
strategy quickly and, and progressively.
And that's really where,
where I really love to play.
I.
Victoria: That's awesome.
And I know we've, we've had a few PE
people on the, the podcast in the past,
and it's always something that people
are interested in terms of both the,
well, how do you, how do you get in.
To a PE-backed company.
So that's usually from somebody that's
in some big, somewhat lumbers, publicly
listed company, but also this whole aspect
of just really driving value and results.
'cause of course, that's
where a lot of the action is.
Michael: private equity
is an interesting medium.
how I got there was after I exited my
chemical company, after a decade of
growing it and, and, and exiting, I
started co-investing and sitting on
boards with, you know, private equity
and venture backed organizations.
And, in my first private equity
board, position, I was sort of.
S predicting the future a little bit
faster than the, the organization itself
and the other board members from the
private equity fund had asked why I was.
knowing where, what was coming or
where it was going, before the team.
And I started
Victoria: Yeah.
Michael: about that.
And then asked if I'd be willing to
take the CEO role of the organization.
So my, my work with, with private
equity started as consultancy, but
then found its way into, operational,
structure and, and, and performance.
So that's really how my, my, my
start into private equity, you
know, began and working with
private equity is, it's amazing.
You're sprinting a marathon, which
is hard, don't get me wrong, right?
'cause private equity has a
five year timeline on average,
from start to their exit.
So you've gotta achieve your growth,
your operational excellence, your safety
improvements, your strategic shifts,
all in a very small amount of time.
So, you know, it's not a, it's not a very
long tenure where public companies have a
lot more time to steer that ship around.
And as the larger organizations go, the
trick is to make them as nimble and as
operationally excellent as possible.
Victoria: Yeah, absolutely.
Well that's a good segue into to Hexion.
So let's talk a little bit, first of
all, just about who and what is Hexion.
'cause some of our folks may not
be familiar with the company.
Michael: So, so Hexion is
actually over 150 years old.
Victoria: Wow.
Michael: be called Borden.
We were founded by, by a gentleman
named Gail Borden, who, who actually
invented, uh, condensed milk
Victoria: I was gonna ask if it
was a dairy, the dairy connection.
Michael: It, it was the,
it was the dairy company.
Of course, you know,
now we're in chemicals.
But, um, they used to have,
Elmer's glue, cracker Jacks.
They used to have, fast food restaurants.
There was a, it was an amazingly diverse.
And um,
Victoria: Wow.
Michael: then the name changed,
years ago and we became Hexion.
It's still a little bit frustrating,
I'm not gonna lie, in Columbus, Ohio.
When you get in a taxi at the airport
and say, take me to the Hexion building,
which has our big name on it, taxi drivers
still look at you like you have, you
know, you have three heads and, um, if
you tell 'em to take you to the board and
building, they know exactly where to go.
So, uh, we're working on
that branding opportunity in.
Victoria: That's amazing.
And how long has it been
Hexion as a company?
Michael: Uh, over a decade.
Victoria: Okay.
That's what I thought.
Yeah.
Michael: And, you know, we're a global
producer o of of, of adhesives and
performance materials and, you know,
we have locations all over the world
headquartered in Columbus, Ohio.
Um, and we have, just under 1500
associates in the organization.
So, you know, we are the world's
pioneers in what are called resins,
which is basically a different type
of glue, for engineered wood products.
And, you know, we work in the, you know,
in in, in the building and construction.
Majority.
We also have products in agriculture
and oil and gas and automotive and
coatings and paints and things like
that, but our big business falls into
the building and construction markets.
Victoria: Got it.
Makes sense.
Makes sense.
So you've been at Hexion now for
a few years and you've really been
leading it through a significant
period of transformation.
Right?
So I know you talked about being
PE-backed and just how that drives, fast
movement, fast decisions, fast results.
But can you describe some
of that transformation and
what really prompted it?
Michael: Yeah, you know, Hexion and,
and prior in was, you know, was built
on the backbone of innovation and, and
purposeful innovation, Ion's history,
some, some ups and downs, um, that
Hexion had in the, in the last decades.
It has become a little bit less
investing into its, pioneering research.
And so at Hexion we are focusing
on transforming, you know, what we,
would define as a more commoditized
chemical supplier into a solutions
focused technology enabled.
Provider to lead the manufacturing
industry of engineered wood and, and
construction and building products.
this shift's been, one driven by our
customers, what our customers need.
and we are 100% customer focused.
we have decided those solutions should
be fully enabling to make sure that their
processes and their products are to the
highest quality and the highest spec by
including systems through our acquisition
with smart tech AI based systems.
As well, well as improving our products
to be the fastest curing, the strongest
bonding materials that can be made
for, for wood product engineering.
By investing in these, you know,
data-driven quality systems and
digitization, we're differentiating
ourselves and helping our customers to
build resilient supply chains of their
products into their markets in the future.
Victoria: Yeah.
Interesting.
So it prompts so many questions
for me about this, Michael, but
let's just start with this whole,
the market and your customers.
I think about, um, engineered
wood products, and I kind of
make an assumption that a lot of
this is coming from China today.
I don't know if that's true or false.
So, you know, how global is your business
and, and what are the pressures that
you guys are seeing given where we are,
from a geopolitical perspective and just
our global economic perspective today.
Michael: So lemme start with
your, with your China Point.
So there are wood panels
made everywhere, right?
Victoria: Okay.
Michael: and plywood and particle board,
and MDF and I can keep going, right?
They're, they're made everywhere
and they are imported.
The nice thing about our chemicals is.
They're made locally, they
don't travel very far.
Their stability is shorter term compared
to, something that you can just put
on, you know, put in a container
and, wait months or a year to use.
So, Hexion is a global organization.
We have 25 plants all around the world.
for, for wood products, they're
in Australia, New Zealand,
Latin America, north America.
We don't play too much in Asia, in
the wood products area other than now
through the acquisition of smart tech.
We have systems sales into those regions.
Um, and then we have some
manufacturing also in Europe
for some of our coatings and.
Emulsions and, business
in, in, in that space.
because of our local, you know, sort of
made local, so sold local, um, philosophy,
we're not terribly impacted by, the
macro tariffs and the cro, you know,
and, and the shifts that are occurring.
We do have some, you know, some exposure
to cross border shipments into Canada.
But that has become much more
mild over time and we, you
know, hope it stays that way.
Of course.
So the tariff risk has been but you know,
our sourcing strategy is still global.
We still make sure we make the
best choices for our products,
for their quality, and obviously
to minimize any disruptions due
to volatility in the market.
we're constantly growing our business
partnerships globally, right?
We just partnered with
a company called Cadent.
Cadent is the leader in what's
called strainer technology.
So basically when you take a tree and
you cut it into the pieces that make.
That make OSB
Victoria: Yeah.
Michael: so the, the little pieces that
get glued together to make a structural
board, they're the world leader in that.
They're based in Canada And we
look to that partnership to, expand
that capability, you know, into the
markets that we, we play in as well.
We also just announced this week
a partnership with a company
with an early stage organization
called Bloom Biorenewables.
They're a technology leader in utilizing
lignin, a part of the tree that's often
used to burn because it doesn't have.
many uses.
Um, so they use it for heating value
fuel value, and we've worked with
them to build novel adhesives from
the tree itself, because lignin is
the glue that holds the tree together.
Victoria: Interesting.
Michael: at international partnerships in
technology basis to expand our innovation
profile, to make sure we're providing,
you know, the best products, to our
customers and through our value chain.
Victoria: Yeah.
Interesting.
So I know you, it sounds like, you
know, you said you started out saying
how you've evolved to being more of a
solutions provider or that's a direction
where you guys are going, but It,
sounds like you're still innovating
as well in products, in the services.
And that becomes all, I
guess, part of that solution.
Yeah.
Michael: It, it you have to innovate
both organically and inorganically.
Hexion does not have the philosophy
of, you know, it's often found
in large organizations what,
what we call not invented here.
If it's not invented here, it can't
be worthwhile, for their business.
We believe that there are great
innovations everywhere, and we wanna
be partnered with the best in what they
do and provide our capabilities, our
strengths, to make them get to market
faster or get to product sooner, with the
best and highest reliability possible.
Victoria: Yeah, I think it's interesting
and I think we are in such a high period
of innovation and transformation when you
just look across not just the chemical
industry, but across all industries.
And so, we're seeing
more and more companies.
Partnering to get, uh, to sustainable
products partnering to bring in the
right technologies to support, their
businesses, their customers, et cetera.
So I think, as you say, you
can't afford just to be looking
internally for the solutions.
They're everywhere around us.
Yeah.
Michael: It's a global world and
you, you've gotta participate
and we're a global company and
you have to participate globally.
Victoria: Yeah.
Michael: I'm very much a believer in, you
know, in, in diversity equals creativity.
And, what I mean by that is, there
are great ideas from people in so
many different industries and so
many different walks of life and
so many different upbringings that
creativity comes from everywhere.
And we wanna be able to leverage
that creativity to deliver.
The best product and the best service
that Hexion can give to everybody that
we, that we partner with going forward.
So
Victoria: Yeah.
Michael: a goal of ours.
Victoria: Yeah.
Makes sense.
So let's just talk a
little bit about customers.
I mean, so obviously customers,
you've already talked about this
being kind of really, um, the
center of what you guys are doing.
What are the biggest challenges
that you maybe are hearing from your
customers today as we sit here mid 2025?
What are your customers saying?
What are they asking for?
And how are you responding?
Michael: Look, you know, all customers.
In the market, all companies in in the
world are trying to do more with less.
Right?
They're constantly being pushed for,
tighter costs, you know, higher margins,
labor, positions in, in the market.
And, Hexion wants to help provide
innovations and products and
solutions to solve those, right?
So we, we work.
Incredibly close with our customers
and our partners and, and they're more
partners than they are just customers.
We, we look at ways of, solving their
problems as part of our offering
and solution and, you know, through
our, some of our AI powered systems
that we're now putting out into
the market so our customers can
operate their engineered production.
safer, at the highest quality,
enabling every one of their operators
to be the best operator, right?
Our AI systems allows everybody
to perform at the highest level.
And you know, so we have products
like our smart quality product that
we just launched at gna, last month at
the Big Wood Engineering Conference.
This is a high performance system.
Inexpensive has an immediate
return in months on the investment
to drive higher product quality
at lower cost and lower waste.
So moving also to our sustainable
solutions as well that makes sure that
we're, you know, helping our customers
to be on a low carbon renewable pathway.
with high performance,
Victoria: Yeah.
Michael: our r and d systems as well
are helping to challenge, you know, the
sustainability around all components
within the industry, where we're looking
at renewable feed stocks, renewable
sources, really original ways to provide
adhesives and resins to the market,
that deliver outsized performance.
A much, much lower carbon footprint,
Victoria: Yeah.
Michael: that's critical for what
we do and how we innovate at.
Victoria: Yeah, it makes sense.
So, smart quality, which you guys have,
have just recently rolled out, that's
targeting your customer's manufacturing.
Can you tell us a little bit more
about that and how it, how it works?
How do they even bring it
in and make it effective?
Michael: So, you know, smart quality
is a, um, is purposely built to be
installed on the production line for eng
Victoria: Hmm.
Michael: all types of
engineering wood panels.
It gives operators real time
feedback on the product.
Final product, wood panel coming out
the other side of their production.
So if the co, if the product has
deficiencies or defects in it, they
learn it fast, they learn it quick,
and we provide recommendations back
to the operator how to improve their
system upstream to make sure that
they are making changes that lead
to a much higher quality score.
Victoria: Yeah.
Michael: everybody's wanting AI in
their systems right in, in their,
in their engineered systems, but our
customers are, are, looking for, you
know, tighter specs, higher quality,
better control, more efficient operation
to allow their operators to do more.
In less time.
Right?
And this solves that problem.
This meets that demand with
actionable insights for them to solve.
And this system can be
downloaded over the web.
It's got a small monthly fee.
And it will deliver, the highest returns
of any product in the industry on a
very simple, very capable install.
this will be a, a lead up to our further
product, which is called Smart Press.
Not to, I know your question
was on smart quality, but
Victoria: it's fine.
Michael: opportunity to
Victoria: we are.
Yeah,
Michael: our,
Victoria: absolutely.
Michael: talk about our, our next,
uh, our, our bigger product, which
is Smart press that automates the.
Temperature and the pressure and
the quality of the product as well.
To build a foundation of an AI fully
enabled system, to the operator
and to the, you know, to the.
of the wood panels.
So we're looking at becoming what
we're calling the ultimate operator.
And the ultimate operator is, you know,
allowing, you know, the operations team
to work at the highest level so that
every board they make is the best board
they can and deliver to the customer.
So
Victoria: Yeah.
Michael: kind of a door opener and
smart press is changing the game.
Victoria: Yeah.
Okay.
So I'm gonna be a little bit of
a devil's advocate here, Michael,
in, in, in the sense of, you know.
I guess the question I have is really
how receptive are customers to this?
Because I could see them saying, Hey,
Michael and the Hexion team, that's great,
but we want you to provide adhesives.
We're not asking you to get into
our actual operations, and are you
equipped to be part of our operations?
How would you respond to that?
Because it seems like you're getting
really intimately invested, not just in
your products, but in the overall system.
And production system, right?
Yeah.
Michael: you something
that's incredibly surprising.
Ion's technical service team is
badged to walk into a customer's
site and most of our customers,
we have that type of intimacy.
They can go in and tell operators to
make changes and they will be listened to
Victoria: Wow.
Michael: So we're
already doing this, we're
Victoria: Okay.
Michael: it through a personal.
Right.
So our knowledge of how the
system works and how it operates.
Is above any one of our competitors.
We are the best when it comes to this.
And I'll tell you, the AI system, the
information that is being built from the
AI system allows us to engineer glue and
resin at a much, much more customizable
Victoria: Yeah.
Michael: Right?
You know, we hear in the news
about custom medicines, right?
That fit our DNA and fit our,
our specific microbiome and
Victoria: Yeah.
Michael: Well now knowing the process
and knowing the wood species and
knowing the, the, the properties that
come along with all of that, we can
now develop resins that are singularly
focused for the specific plant on
the specific day of their operation.
So think about that capability to enable
what we are most known for, as you
said, our resins, our glues, but now
through AI and enablement on efficiency
improvement for the customer and cost
savings in the millions of dollars,
we can also customize the glue that
works better for them so they get even
better products and better performance.
Victoria: Wow.
Michael: circle and the
customers are demanding it.
We
Victoria: Yeah.
Michael: list on installation
of all of our systems.
Victoria: how is the workforce responding?
Because, you know, one of the
questions, that I think about.
Especially as we start adopting more
and more, AI is having workforce
readiness to actually, , utilize these
tools and, and frankly, it's changing
the way they work quite dramatically.
They have to upskill
differently than they do today.
Right?
So I think about, the manufacturing
process is often thought as being very.
Manual, although we know there's a ton
of automation, but adding this additional
layer of smart sophistication, requires
more upskilling of the workforce.
Do you, do you see this when
you talk with your own workforce
and your customer's workforce?
Michael: So I, I could speak
to Hexion and how we use ai.
You know, we.
We make AI a requirement at Hexion.
Victoria: Hmm.
Michael: that every associate
that we hire today must have
some or familiarity with ai.
just a must.
It makes everybody so much more
productive and so much more capable.
I constantly groan every time I
get an email and we're talking.
If we're talking about AI and somebody
says, oh, I, I wrote this email.
I didn't use ai, right?
And like there's a stigma to using ai, and
I think that needs to go away very quickly
because I think the stigma should be.
Why aren't you using ai?
Right?
I would rather that email say, Hey,
I wrote this with AI to save myself
10 minutes, and I was able to move on
to another project that's producing
value for our customers and for
our partners in everything we do.
at the customer side for the
enablement of ai, it's allowing our,
our, our partners to utilize their
resources at a higher level, right?
Victoria: Hmm.
Michael: operator is working at an
equal level, whether they've been
there for one year or 30 years.
So that really enables a level, uh,
of the level of the playing field
that's never been seen before.
look at this as that those people can
now be used for other operations, other
capabilities in the organization to make
sure that they are running safely and
and smart throughout the entire way.
So we look at this As AI is a pure
enablement and if you build it correctly
with the right screens, the right
recommendations, the right training
embedded, upskilling is not a problem.
because it's very intuitive, it's very
capable, and you can always say no to
the recommendation if you feel that
you know better and you know, smarter.
We don't force the change.
We allow the decision making to be
made by those that feel they are the
experts, but we believe that our systems.
Victoria: Yeah.
Makes sense.
Well, and I think the other piece on
this is, um, certainly we've all seen
across the industry, not just the
chemical industry, but many industries,
really a talent gap in this concern
about, enough of an available workforce.
So.
To the degree that there is AI and
other automation and digitization
tools that help alleviate some of
the, um, the human intervention needs
or putting people into higher value,
work activities, it also addresses
potentially some of this talent gap.
Um, and just the, the sheer physical gap
of number of people available to work.
Michael: Look, AI needs to be
run through hr, not through it.
I'm, I'm a very big believer in
that because it's a skillset that
just is an enablement, right?
With turnover of, of people with,
you know, don't wanna say people
are any less loyal than they were.
We have associates at, at Hexion
that have been here 30, 40 years and,
and, you know, their, their children
are here and, you know, all of that.
So we love that generational capability.
But AI is an enabling tool.
It, it, it really does allow.
To help solve some of those gaps
that occur because the knowledge base
allows it to accelerate so much faster.
And with our transformational process
as well, well, where we're cross
collaborative in everything we do, you
know, we don't run anything in a silo.
We make sure that, you know, we try
and flatten the organization as much
as possible and we put everybody
in the room that could provide.
Diverse thought, um, so that
you can challenge the status
quo and make sure you're making
advancements in everything you do.
And we think that's the enablement
to work in a function of, you know,
how the, the world is moving today.
Victoria: Yeah.
That's great.
Well, and of course Michael,
I mean, throughout your career
you've been an innovator, right?
A hundred patents.
You're clearly comfortable with,
adopting a bracing and developing new
things, which is really incredible.
So let, yeah, let me,
let me ask this question.
I, I, you know, we're kind of getting
to the close of our, our time together.
and I love to ask this question.
In fact, I hear from listeners
that they love to hear the
answers to these questions.
So what advice would you give
to a young professional just
entering the industry that says,
you know, how do I make an impact?
How do I achieve the success maybe that.
you've achieved?
What advice do you offer people?
Michael: So, so number one
is you have to stay curious.
You have to keep asking the question.
How, why, what, right?
It, it's, you can't be afraid to
ask the dumb question in a room.
I asked some of the, some of the simplest
questions because if I'm curious on
something, I'm sure somebody else in
the room as well, and that in that
inquisitiveness is critical to being,
you know, successful in any organization
if you don't lean in and ask questions.
Challenges are gonna persist and
you're not gonna be able to really
and, and transform an organization.
Sometimes the simplest question, not
the question that'll change something,
but maybe how somebody answers that
question will give somebody an idea
on a problem that they're working
on that's not being discussed today.
So it's really about that empowerment of
information and that spread of, you know,
of, of knowledge across the organization.
I'm a very big fan of being
the dumbest person in the room.
Um, and that is a goal that
I've had my entire career.
I surround myself with
the smartest people I can.
It makes my job really easy.
So for me, if you can have a, you
know, like I said, a diverse, capable,
inquisitive, hungry team around you,
is the best place to be in the world.
Because your organization will constantly
have that success and it's really
about getting in a room together.
Right?
And
Victoria: Yeah.
Michael: try and be present.
When I was at Bell Labs, years
and years and years ago, I.
bell Labs is the place where the
transistor was invented and, you
know, and c programming and Unix and,
you know, wireless communications.
Right.
It was an innovation, Disneyland of sorts.
um, my first day I was invited to lunch
by a host and he was a Nobel Prize
winner, and I was sat at this lunch
Victoria: Wow.
Michael: These preeminent scientists,
Nobel Prize winners, fields, medal
winners, you know, national Academy
of Science, medicine and Engineering.
They were all diverse in education, and
he came up to me in the middle of lunch
and kind of whispered in my ear and said.
What is, what do you think the
greatest invention to innovation is?
And this guy won a Nobel Prize in
physics, so I was like, oh my God, I
gotta come up with something that he did.
and I very quickly, you know, named
something in spectroscopy that I thought
would be, you know, make me sound
smart and him happy that it, you know,
involved, some of the stuff he worked in.
he goes, no, the cafeteria.
was before interdisciplinary science
or as interdisciplinary sciences.
Got, but you had a mathematician
talking to a biologist.
A biologist talking to a chemist,
a chemist talking to a physicist,
a physicist talking to an
engineer, and so on and so forth.
And that really was the key
to the success of innovation.
You just, if you could keep asking
questions and keep pushing experiences
and learnings, sky's the limit.
That really to me would be the
two things that I think are
critical to becoming a success in
whatever your endeavor to pursue.
Victoria: Love it.
Love it, love it.
Michael, This has been
a great conversation.
I've really enjoyed spending
time with you today.
Michael: This has been wonderful.
Thank you so much for this opportunity.
Victoria: Thanks for joining me, and
thank you everyone for joining us today.
Keep listening, keep following,
keep sharing, and we will
talk with you again soon.
Thanks for joining us
today on The Chemical Show.
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