Ashland Completes $10 Million Expansion of Pharmaceutical Facility in Brazil
Ashland Incorporated has completed a $10 million expansion of its pharmaceutical plant in Brazil, enhancing its capabilities to meet the rising demand for coated tablets. Despite a decline in its stock price over the past year, the company anticipates positive projections for sales and EBITDA in fiscal 2025. Ashland maintains a Zacks Rank of #4, while other firms in the basic materials sector are performing better.
Ashland Incorporated has finalized a significant $10 million expansion of its pharmaceutical manufacturing facility located in Cabreuva, Brazil. This development enhances Ashland’s production capabilities, addressing the growing market demand for coated tablets in Latin America, where usage has escalated by 4.3% a year since 2019, and by 5.7% annually in Brazil specifically.
In addition, Ashland is modernizing equipment designed for microbial protection within personal care applications at its Technical Center in Sao Paulo. This modernization complements previous investments in its bioresorbable polymers facility in Mullingar, Ireland, and the biofunctionals R&D lab in Shanghai, China.
The newly installed state-of-the-art equipment advances Ashland’s expertise in tablet coating, color matching, and quality evaluation. These enhancements enable the company to deliver tailored solutions and innovative offerings such as ultra-high solids coatings, moisture control, flavor masking, and modified release systems. Staff members received specialized training from headquarters in the United States, as well as vendors, to maximize the equipment’s effectiveness.
Despite the expansion, Ashland’s shares have decreased by 39.3% over the past year, while the industry witnessed a modest 2% decline. For fiscal 2025, Ashland projects sales between $1.90 billion and $2.05 billion, anticipating an adjusted EBITDA ranging from $430 million to $470 million.
Currently, Ashland carries a Zacks Rank 4 (Sell). In contrast, better-ranked stocks within the basic materials sector include Carpenter Technology Corporation, CSW Industrials Inc., and Axalta Coating Systems Ltd., with Carpenter Technology having a Zacks Rank 2 (Buy) and achieving a substantial 156.6% increase in stock value over the last year, exceeding earnings expectations significantly.
Ashland’s recent $10 million investment enhances its pharmaceutical manufacturing capabilities in Brazil, responding effectively to regional market demands. Despite facing stock price declines over the past year, the company’s expansion efforts position it for increased competitiveness in the pharmaceutical sector, with notable projections for future sales and EBITDA. The strategic upgrades and rigorous employee training ensure Ashland can meet the evolving needs of the market.
Original Source: www.tradingview.com
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