WILMINGTON, DE — Ashland Inc. (NYSE: ASH) has announced major progress on its \$60 million manufacturing network optimization plan, a core part of its ongoing strategy to strengthen profitability and operational efficiency. As part of this initiative, the company will close its manufacturing facilities in Parlin and Chatham, New Jersey, consolidating production to larger sites in Virginia and Massachusetts.
The Parlin site’s hydroxyethyl cellulose (HEC) production will transition to Ashland’s Hopewell, Virginia plant, which has received expanded investment to increase capacity and capabilities. The Chatham plant’s microbial protection production will move to Freetown, Massachusetts. These consolidations are designed to reduce costs, improve operational consistency, and support Ashland’s plan to deliver HEC network optimization savings on schedule.
“Our team has been focused on a deliberate strategy, taking purposeful actions to increase our competitive position,” said Guillermo Novo, chair and chief executive officer of Ashland. “With the completion of our portfolio optimization and \$30 million restructuring plan, we are now accelerating cost savings from our \$60 million manufacturing network optimization.”
These updates mark the completion of Ashland’s HEC optimization plan. The new consolidated HEC network is expected to support global demand with production across the U.S., Europe, and China, while also opening opportunities to exceed the initial \$60 million savings target through enhanced productivity.
Novo added, “These decisive actions allow us to navigate near-term challenges effectively and position Ashland for enhanced profitability and operating consistency. It’s about acting with prudence and discipline, concentrating on our controllable factors to maximize results and deliver on our self-help growth commitments.”
Beyond network optimization, Ashland is making significant global investments to support long-term growth. Recent projects include expansions in Ireland and the U.S. for its injectables business, Brazil for tablet coatings and microbial protection, China for biofunctionals actives, and ongoing work on a new tablet coating facility in India.
During its recent Innovation Day for analysts and investors, Ashland highlighted advancements in scalable technology platforms that can be customized to meet diverse regional and market needs. These patented, tunable technologies are designed to capture new market opportunities with enhanced performance and regulatory adaptability.
“Ashland’s strategic priorities represent a fundamental shift in how we approach innovation, organic growth, and manufacturing,” Novo said. “The portfolio and network optimization efforts provide strategic flexibility for the cost-effective repurposing of assets, enabling us to support new technology platforms while maintaining the benefits of large-scale operations and tailored local solutions.”
Ashland’s continued focus on operational excellence and innovation underscores its commitment to strengthening core technologies and delivering sustainable value to shareholders and customers worldwide.
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