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Ashland Specialty to expand output at Virginia facility

09 Apr '15

3 min read

Ashland Specialty Ingredients, a subsidiary of Ashland Inc, said it plans to invest around $89 million to expand specialty chemical production at its manufacturing facility in Hopewell, Virginia.

According to a Ashland press release, a majority of the investment which will be spread over a period of three years and 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 per cent in Hopewell.

The company also will expand capacity for Klucel hydroxypropylcellulose (HPC), used to enable time-release delivery in pharmaceutical tablet binders and coatings and other applications, by around 50 per cent.

The plant expansion is expected to begin during the summer of 2015 and 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, 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 capitalise on those opportunities," he added.

"This expansion is consistent with our strategy of investing in higher-margin core businesses where we see improving demand," added Kevin Willis, Ashland 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," he too added.

The Virginia Economic Development Partnership worked with the City of Hopewell and Virginia's Gateway Region to secure the project for the Commonwealth.

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.

Ashland Specialty Ingredients is a global producer of cellulose ethers and a global leader in vinyl pyrrolidones.

It uses natural, synthetic and semisynthetic polymers derived from plant and seed extract, cellulose ethers and vinyl pyrrolidones, as well as acrylic and polyurethane-based adhesives. (AR)

Fibre2fashion News Desk - India