Ashland to close two New Jersey plants in $60 million optimization plan

WILMINGTON, Del. - Ashland Inc. (NYSE:ASH), a specialty chemicals company with a market capitalization of $2.47 billion and annual revenue of $1.95 billion, announced Tuesday it will close manufacturing facilities in Parlin and Chatham, New Jersey, as part of its ongoing $60 million manufacturing network optimization initiative. According to InvestingPro analysis, the company’s strategic moves come at a crucial time as analysts project a return to profitability this year.

The specialty chemicals company will transfer hydroxyethyl cellulose (HEC) production from Parlin to its Hopewell, Virginia plant, and move microbial protection production from Chatham to Freetown, Massachusetts.

These closures represent key steps in Ashland’s strategy to consolidate smaller plants into larger manufacturing sites, build scale, and improve cost competitiveness across its operations.

"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 of Ashland, in a press release statement.

The company indicated the Hopewell facility has received increased investments to expand capacity and capabilities. Following this consolidation, Ashland’s HEC network will maintain production capabilities across the United States, Europe, and China.

The manufacturing optimization plan follows the completion of Ashland’s portfolio optimization and $30 million restructuring initiatives. The company stated these actions are expected to positively impact profitability and cost competitiveness.

Beyond network optimization, Ashland reported it has made significant investments in its injectables business in Ireland and the United States, tablet coatings and microbial protection in Brazil, biofunctionals in China, and microbial protection operations in the United States and Europe. The company is also constructing a tablet coating plant in India.

Ashland employs approximately 2,960 people globally and serves customers in various industries including architectural coatings, construction, energy, food and beverage, personal care, and pharmaceutical sectors. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued, with analysts maintaining a positive outlook and multiple ProTips highlighting the company’s strong shareholder returns and dividend consistency.

In other recent news, Ashland Global Holdings Inc. reported second-quarter earnings that fell short of analyst expectations, with earnings per share at $0.99 and revenue at $479 million, both missing forecasts. The company experienced a 17% year-over-year sales decline, attributed to lower organic sales and a $30 million restructuring plan that was completed ahead of schedule. JPMorgan maintained its Overweight rating on Ashland, setting a price target of $67, while noting that consensus estimates for the company’s third-quarter earnings might be optimistic. Jefferies, on the other hand, raised its price target for Ashland to $71, maintaining a Buy rating, and highlighted the company’s potential earnings growth driven by operational leverage and innovation.

Additionally, Valvoline Inc., previously a segment of Ashland, announced Kevin Willis as its new Chief Financial Officer, effective May 19, 2025, following Mary Meixelsperger’s retirement. Willis, who has a history with Ashland, is expected to contribute to Valvoline’s strategic goals with his expertise in capital markets management and operational efficiency improvements. Ashland’s strategic priorities include cost management and productivity improvements, with a revised full-year sales guidance of $1,825-$1,900 million and adjusted EBITDA guidance of $400-$420 million. The company remains focused on long-term value creation and navigating current economic challenges.

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