Ashland Inc. provided an update on its $60 million manufacturing network optimization plan, a key initiative under its "execute" strategy. The company announced the closure of its manufacturing facility in Parlin, New Jersey, and the transfer of its hydroxyethyl cellulose (HEC) production to its Hopewell, Virginia plant. This action aims to build larger scale and improve costs across manufacturing sites.
Additionally, Ashland announced the closure of its Chatham, New Jersey plant, transferring its microbial protection production to its Freetown, Massachusetts plant. These consolidations are part of efforts to integrate smaller plants into larger manufacturing sites, enhancing operational consistency and profitability.
Guillermo Novo, Ashland's chair and chief executive officer, stated that these decisive actions accelerate cost savings and improve the competitive position of core technologies like HEC and vinyl pyrrolidone and derivatives (VP&D). The company expects these measures to positively impact profitability and cost competitiveness, supporting market share gains.
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