Ashland Announces Facility Closure as Part of Network Optimization Strategy
.webp?t=1704834340)
Ashland Inc. recently provided an update on its $60 million manufacturing network optimization plan, a key initiative under its Execute strategy. As part of ongoing efforts to enhance operational consistency and profitability, and improve the competitive position of core technologies, the company announced the closure of its manufacturing facility in Parlin, New Jersey, and the transfer of its hydroxyethyl cellulose (HEC) production from Parlin to its Hopewell, Virginia, plant.
Ashland reports that the action is a critical step in building larger scale, improving costs across manufacturing sites, and delivering the planned HEC network optimization savings in line with Ashland's timeline. The company also announced the closure of its Chatham, New Jersey, plant, and the transfer of its microbial protection production to its Freetown, Massachusetts, plant, making progress on the consolidation of its smaller plants into its larger manufacturing sites. Beyond the network optimization, Ashland continues to invest in its future.
"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, 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. Doing so increases the momentum of our growth plans and builds in optionality for the strategic repurpose and modernization of existing assets while improving our processes. We expect these actions to have a positive impact on our profitability and cost competitiveness, enabling us to gain market share."
Ashland reports that its $60 million manufacturing network optimization continues to strengthen core technologies including vinyl pyrrolidone and derivatives (VP&D) and HEC. The Hopewell facility has received increased investments to expand its capacity and capabilities, building scale for the company. This latest update marks the completion of the HEC plans, a vital component of the overall savings initiative. The newly consolidated HEC network has capacity to support demand with production in the United States, Europe, and China. Another critical phase for Ashland is identifying and accelerating productivity for the plant network, to drive savings above the network optimization target of $60 million. Details about these efforts will be shared over time.
Novo emphasized, “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."
Visit ashland.com and ashland.com/ESG to learn more.
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!
