Ashland to invest approximately $89 million to expand specialty chemicals production in Hopewell, Virginia
April 02 2015 - 10:19AM
Growing demand for
NatrosolTMhydroxyethylcellulose and KlucelTM
hydroxypropylcellulose drives capacity
expansion
April 2, 2015
WILMINGTON, Delaware - Ashland Specialty
Ingredients, a commercial unit of Ashland Inc. (NYSE: ASH), today
announced plans to invest approximately $89 million over the next
three years to expand specialty chemical production at its
manufacturing facility in Hopewell, Virginia. Virginia Governor
Terry McAuliffe joined Ashland leaders in making the announcement
today during a reception and tour at the plant.
The majority of the investment will be aimed at
expanding production of two key product lines. Ashland said it
would increase production of Natrosol hydroxyethylcellulose (HEC),
used as a thickener in latex paints, by 4,700 metric tons, or
approximately 40 percent in Hopewell. The company also will expand
capacity for Klucel hydroxypropylcellulose (HPC), a high-value
technology used to enable time-release delivery in pharmaceutical
tablet binders and coatings and other applications, by
approximately 50 percent.
The plant expansion is expected to begin during
the summer of 2015. An estimated 17 new jobs are expected to be
added to the facility's current total of 237 positions as a result
of the expansion.
"This significant investment demonstrates our
continued commitment to meeting the growing needs of our
customers," said Luis Fernandez-Moreno, senior vice president of
Ashland and president, Ashland Specialty Ingredients. "We see good
opportunities for growth in these core product lines and this
expansion will ensure we are in a strong position to capitalize on
those opportunities."
"This expansion, which was already included in the
fiscal 2015 capital spending plan we outlined in late January, is
consistent with our strategy of investing in higher-margin core
businesses where we see improving demand," added Kevin Willis,
Ashland senior vice president and chief financial officer.
"I am thrilled to announce this significant
investment demonstrating Ashland's continued commitment to Virginia
and to the City of Hopewell," said Virginia Governor Terry
McAuliffe. "Ashland, one of the Fortune 500 companies that calls
Virginia home, is a vital employer in the area, providing the kind
of jobs that are critical as we work to create a diverse, new
Virginia economy."
The Virginia Economic Development Partnership
worked with the City of Hopewell and Virginia's Gateway Region to
secure the project for the Commonwealth. Gov. McAuliffe approved a
$700,000 performance-based grant from the Virginia Investment
Partnership program, an incentive available to existing companies.
Ashland also will be eligible to receive state benefits from the
Virginia Enterprise Zone Program, administered by the Virginia
Department of Housing and Community Development. Additional funding
and services to support the company's employee training activities
will be provided through the Virginia Jobs Investment Program.
About Ashland Specialty
Ingredients
Ashland Specialty Ingredients is the leading global producer of
cellulose ethers and a global leader in vinyl pyrrolidones. It
offers industry-leading products, technologies and resources for
solving formulation and product-performance challenges. Using
natural, synthetic and semisynthetic polymers derived from plant
and seed extract, cellulose ethers and vinyl pyrrolidones, as well
as acrylic and polyurethane-based adhesives, Specialty Ingredients
offers comprehensive and innovative solutions for today's demanding
consumer and industrial applications. Key customers include:
pharmaceutical companies; makers of personal care products, food
and beverages; manufacturers of paint, coatings and construction
materials; packaging and converting; and oilfield service
companies. Visit ashland.com to learn more.
About Ashland Inc.
Ashland Inc. (NYSE: ASH) is a global leader in providing specialty
chemical solutions to customers in a wide range of consumer and
industrial markets, including architectural coatings, automotive,
construction, energy, food and beverage, personal care and
pharmaceutical. Through our three commercial units - Ashland
Specialty Ingredients, Ashland Performance Materials and Valvoline
- we use good chemistry to make great things happen for customers
in more than 100 countries. Visit ashland.com to learn more.
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C-ASH
FOR FURTHER
INFORMATION:
Media Relations
Carolmarie
Brown
+1 (302) 995 3158
ccbrown@ashland.com
Investor Relations
Jason Thompson
+1 (859) 815-3527
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ashland Inc. via Globenewswire
HUG#1908474
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