Ashland Advances $60 Million Strategic Manufacturing Network Optimization

Ashland Inc. announced updates on its $60 million manufacturing network optimization initiative, a key component of its execution strategy. To improve operational efficiency, profitability and competitiveness of core technologies, the company will close its facility in Pawling, New Jersey, and move hydroxyethylcellulose (HEC) production to its facility in Hopewell, Virginia.

This transformation will help Ashland scale operations, reduce production costs and achieve HEC optimization goals on time. In addition, the company will close its facility in Chatham, New Jersey, and move microbial protection production to its facility in Freetown, Massachusetts, further consolidating smaller facilities into larger, more efficient ones. In addition to these network changes, Ashland remains focused on investing for long-term growth.

With the completion of its portfolio optimization and $30 million restructuring plan, the company is accelerating cost savings through its $60 million manufacturing network optimization initiative. The move is designed to drive growth, create opportunities to modernize and repurpose existing assets, and improve operational efficiency. These actions are expected to improve the company's profitability, reduce costs, and support market share expansion.

Ashland's $60 million manufacturing network optimization continues to strengthen its core technologies, including vinyl pyrrolidone and its derivatives (VP&D) and hydroxyethyl cellulose (HEC). The company has made additional investments in its Hopewell facility to expand capacity and production capabilities.

The upgrade marks the completion of the HEC optimization work, which is an important part of its broader cost savings strategy. The streamlined HEC production network is now ready to meet global demand, with plants in the United States, Europe and China in operation. Looking ahead, Ashland is focused on improving production efficiency across its entire plant network to exceed the $60 million savings target set by the optimization program.