Ashland boosts pharma capacity with Brazil plant expansion

Published 01/04/2025, 12:10
Ashland boosts pharma capacity with Brazil plant expansion

WILMINGTON, Del. - Ashland (NYSE: ASH), a specialty chemicals company with a market capitalization of $2.8 billion, has announced the completion of a $10 million expansion at its pharmaceutical manufacturing facility in Cabreúva, Brazil, with a ribbon-cutting ceremony scheduled for April 4, 2025. This investment is set to enhance the company’s production capabilities and market presence in Latin America, particularly in the coated tablets sector where demand has been growing steadily.

The expansion comes on the heels of Ashland’s previous investments in Ireland and China, as part of its strategy to globalize and innovate, aiming to provide differentiated value to customers and shareholders. The Brazilian plant’s upgrade includes state-of-the-art equipment to improve tablet coatings application, color matching, and quality evaluation, alongside modernized equipment for microbial protection in personal care applications at the company’s São Paulo R&D lab.

According to Guillermo Novo, Ashland’s chair and chief executive officer, these investments are a testament to the company’s commitment to global expansion and innovation in tablet coatings and microbial protection. The new facilities are expected to foster innovation, collaboration, and technical support for Ashland’s customers.

In addition to the pharmaceutical sector, Ashland is also investing in the personal care industry, with Hamilton Oliveira Junior, general manager for Latin America, personal care at Ashland, expressing excitement over the local production of microbial protection products in Brazil.

The company’s recent investments are aligned with the increasing consumption trends in Latin America and Brazil, where coated tablets have seen average annual growth rates of 4.3% and 5.7% respectively, between 2019 and 2023. Moreover, Ashland’s introduction of seven new platform technologies in 2023 is expected to drive further innovation and organic growth.

Ashland Inc. (NYSE: ASH) is a global entity focusing on additives and specialty ingredients across various consumer and industrial markets. The company prides itself on its ESG initiatives and operates in over 100 countries with a workforce dedicated to developing innovative solutions. According to InvestingPro, Ashland has maintained dividend payments for 55 consecutive years, demonstrating strong financial stability. The company’s stock currently trades below its Fair Value, presenting a potential opportunity for investors. For detailed analysis and additional insights, investors can access comprehensive Pro Research Reports covering 1,400+ US stocks, including Ashland, on InvestingPro.

This expansion is part of Ashland’s ongoing efforts to meet growing market demands and strengthen its competitive position in the pharmaceutical and personal care industries in Latin America. The information in this article is based on a press release statement.

In other recent news, Ashland Inc. has been the focus of significant developments impacting its financial outlook and market position. The company recently announced the divestiture of its Avoca business to Mane, a fragrance and flavor manufacturer, with the terms of the deal remaining undisclosed. This strategic move is part of Ashland’s effort to streamline its portfolio and focus on core businesses. On the earnings front, Ashland’s recent report surpassed management’s previously lowered expectations, though uncertainties persist, particularly in the Life Sciences segment. Analysts from BMO Capital Markets have adjusted Ashland’s price target to $77, maintaining a Market Perform rating amid these uncertainties.

Jefferies has also revised its price target for Ashland to $82, retaining a Buy rating while expressing caution about future earnings projections. Meanwhile, JPMorgan upgraded Ashland’s stock rating to Overweight, highlighting the company’s resilience and attractive valuation despite recent challenges. In contrast, Seaport Global Securities downgraded Ashland to Neutral, citing competitive pressures in the Specialty Additives market and challenges in the Life Sciences sector. These recent developments underscore the varied analyst perspectives on Ashland’s market position and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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