Ashland resumes manufacturing operations in Texas City and Marl, Germany
(Thomson Reuters ONE) -
Texas plant back to full production after Hurricane Harvey, while German
facility resumes normal operations following fire last month
COVINGTON, Kentucky, September 18, 2017 - Ashland (NYSE: ASH) today announced
that its manufacturing facilities in Texas City, Texas, and Marl, Germany, have
resumed normal operations after shutting down last month due to Hurricane Harvey
in south Texas and a previously announced fire at the German plant.
The Texas City plant - which produces PVP linear and crosslinked homopolymers,
PVP/VA copolymers and NMP - returned to full production late last week after
being down nearly three weeks due to the impact from the hurricane. Local staff
and a supplemental team of experts from across Ashland followed a comprehensive
recovery plan to ensure all equipment was safe and in proper working condition
prior to restart. Rail service to the plant is back online, and shipping
operations have returned to normal at the warehouse near the Texas City
facility.
Ashland also has seen marked improvements in the broader shipping, trucking and
rail networks, although some congestion remains and bulk truck capacity is tight
in Texas as plants in the area restart and work through pent-up demand. The Port
of Houston has re-opened, although some delays are expected, and domestic
shipping is improving, particularly for packaged goods.
"This was an incredible team effort to help the Texas City plant return to safe
and responsible operations following such a tragic event," said William A.
Wulfsohn, Ashland chairman and chief executive officer. "It's a testament to the
tremendous pride and commitment of everyone involved, particularly our 180
colleagues in Texas City, many of whom are facing personal hardship and property
losses following the unprecedented flooding. At the same time, teams from across
our organization - including operations, supply chain, information technology,
environmental, health and safety, and human resources - have provided critical
support and expertise."
Based on current information, Ashland does not expect the event to have any
material impact to adjusted results in the September quarter.
Marl facility returns to normal
The Marl plant - which produces 1.4 butanediol (BDO), tetrahydrofuran (THF) and
formaldehyde - also has restarted production ahead of schedule. The company
declared a force majeure in Europe on August 11 as a result of a fire that led
to the shutdown of the plant. Supply of those products in Europe remains
somewhat restricted in the short term as the company works to rebuild inventory
and return to normal operations. Ashland has been working closely with affected
customers to minimize the impact to their respective businesses during the
shutdown and while the force majeure is in effect.
As a result of the faster-than-anticipated return to production, Ashland has
reduced its expectation of the financial impact of the fire and subsequent plant
shutdown by approximately $5 million, to an expected impact of $10-$15 million.
As previously stated, given the unusual nature of the loss, Ashland plans to
include the majority of the financial statement impact from the fire under "key
items" when it releases earnings for the September quarter, therefore having no
impact to adjusted results. However, the lost profitability associated with any
lost sales will impact adjusted results for the Intermediates & Solvents (I&S)
reportable segment. Ashland continues to expect adjusted EBITDA for the I&S
segment to be in the range of $5-$10 million during the fiscal fourth quarter.
About Ashland
Ashland Global Holdings Inc. (NYSE: ASH) is a premier global specialty chemicals
company serving customers in a wide range of consumer and industrial markets,
including adhesives, architectural coatings, automotive, construction, energy,
food and beverage, personal care and pharmaceutical. At Ashland, we are nearly
7,000 passionate, tenacious solvers - from renowned scientists and research
chemists to talented engineers and plant operators - who thrive on developing
practical, innovative and elegant solutions to complex problems for customers in
more than 100 countries. Visit ashland.com to learn more.
C-ASH
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. Ashland has identified some of
these forward-looking statements with words such as "anticipates," "believes,"
"expects," "estimates," "is likely," "predicts," "projects," "forecasts,"
"objectives," "may," "will," "should," "plans" and "intends" and the negative of
these words or other comparable terminology. Ashland may from time to time make
forward-looking statements in its annual reports, quarterly reports and other
filings with the SEC, news releases and other written and oral communications.
These forward-looking statements are based on Ashland's expectations and
assumptions, as of the date such statements are made, regarding Ashland's future
operating performance and financial condition, as well as the economy and other
future events or circumstances. Ashland's expectations and assumptions include,
without limitation, internal forecasts and analyses of current and future market
conditions and trends, management plans and strategies, operating efficiencies
and economic conditions (such as prices, supply and demand, cost of raw
materials, and the ability to recover raw-material cost increases through price
increases), and risks and uncertainties associated with the following: the
impact to the Intermediates and Solvents segment of the shutdown at the Marl,
Germany manufacturing facility, the impact of Hurricane Harvey at the Texas
City, Texas manufacturing facility, the impact of acquisitions and/or
divestitures Ashland has made or may make, including the acquisition of
Pharmachem (including the possibility that Ashland may not realize the
anticipated benefits from such transactions); Ashland's substantial indebtedness
(including the possibility that such indebtedness and related restrictive
covenants may adversely affect Ashland's future cash flows, results of
operations, financial condition and its ability to repay debt); the potential
that Ashland does not realize all of the expected benefits of the separation of
its Valvoline business; and severe weather, natural disasters, cyber events and
legal proceedings and claims (including product recalls, environmental and
asbestos matters). Various risks and uncertainties may cause actual results to
differ materially from those stated, projected or implied by any forward-looking
statements, including, without limitation, risks and uncertainties affecting
Ashland that are described in Ashland's most recent Form 10-K (including Item
1A Risk Factors) filed with the SEC, which is available on Ashland's website at
http://investor.ashland.com or on the SEC's website at http://www.sec.gov.
Ashland believes its expectations and assumptions are reasonable, but there can
be no assurance that the expectations reflected herein will be achieved. Unless
legally required, Ashland undertakes no obligation to update any forward-looking
statements made in this news release whether as a result of new information,
future events or otherwise. Information on Ashland's website is not incorporated
into or a part of this news release.
FOR FURTHER INFORMATION:
Investor Relations:
Seth A. Mrozek
+1 (859) 815-3527
samrozek(at)ashland.com
Media Relations:
Gary Rhodes
+1 (859) 815-3047
glrhodes(at)ashland.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq 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
Unternehmensinformation / Kurzprofil:
Datum: 18.09.2017 - 14:00 Uhr
Sprache: Deutsch
News-ID 560257
Anzahl Zeichen: 9311
contact information:
Town:
Covington
Kategorie:
Business News
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