Ashland expands pharmaceutical plant for Aquarius™ tablet coatings and commissions new microbial protection capability in Brazil, demonstrating strategy to globalize, innovate, and invest

Rhea-AI Summary

Ashland has completed a $10 million expansion of its pharmaceutical manufacturing plant in Cabreúva, Brazil, with a ribbon-cutting ceremony scheduled for April 4, 2025. The investment aims to meet growing market demand for coated tablets in Latin America, where consumption grew 4.3% annually between 2019-2023, with Brazil reaching 5.7% yearly growth.

The expansion includes modernization of microbial protection equipment at the R&D laboratory in São Paulo, following previous investments in Ireland and China. The new state-of-the-art facilities enhance Ashland's capabilities in tablet coatings application, color matching, stability, and quality evaluation. Local employees received specialized training at US headquarters to ensure optimal performance.

In 2023, Ashland introduced seven new platform technologies focused on sustainable innovations in personal care, pharmaceuticals, and coatings sectors. The company has already launched several patented innovations from their Transformed Vegetable Oils and Super Wetters platforms.

Positive

• Strategic $10M investment expanding pharmaceutical manufacturing capacity in high-growth market
• Strong market growth metrics: Brazil 5.7% annual growth, Latin America 4.3%
• Enhanced R&D capabilities with new state-of-the-art equipment
• Launch of seven new platform technologies with patented innovations

Negative

• None.

Increased production capacity and market presence expected to drive competitive position and organic growth; follows previous investments in Ireland and China

Wilmington, Del., April 01, 2025 (GLOBE NEWSWIRE) -- Ashland has completed a 10-million-dollar expansion of its pharmaceutical manufacturing plant in Cabreúva, Brazil and will celebrate the occasion with a ribbon-cutting ceremony on April 4, 2025.

The investment significantly expands Ashland’s pharmaceutical footprint in the region and capabilities to meet increasing market demand for coated tablets in Latin America and Brazil. Between 2019 and 2023 the consumption of coated tablets in Latin America had an average growth of 4.3 percent per year, while Brazil has reached growth of 5.7 percent per year⁺. 

The investment also includes the modernization of equipment for microbial protection in personal care applications at the Research and Development (R&D) laboratory of the company's Technical Center in São Paulo and follows the company’s previous investments to expand their bioresorbable polymers facility in Mullingar, Ireland and biofunctionals R&D lab in Shanghai, China.  

“Our focused actions continue to demonstrate Ashland’s strategies to globalize, innovate and invest as a means of driving superior differentiation for customers and increase shareholder value,” said Guillermo Novo, chair and chief executive officer, Ashland. “The investments we have made in Cabreúva and São Paulo are supporting the globalization of our expertise in tablet coatings and microbial protection. They ensure even more innovation, collaboration and technical support for Ashland customers.”

The new state-of-the-art equipment enhances Ashland’s capabilities in tablet coatings application, color matching, stability and quality evaluation. Through enhancements to the R&D lab, Ashland can offer customized solutions to industry needs, and innovative solutions with ultra-high solids coatings, moisture protection, odor and flavor masking, and modified release systems. To ensure optimal performance, local Ashland employees underwent specialized training at the company’s headquarters in the United States and with equipment manufacturers.

“Our investments are focused on meeting growing market demand in Brazil and Latin America with more efficiency and technology,” said Alessandra Faccin, senior vice president and general manager, life sciences, Ashland. “The new plant accommodates high-performance production, and offers our customers differentiated technical support from formulation design to industrial scale, enabling new innovations and organic growth."

“In personal care, we are excited to commission the local production of microbial protection products in Brazil,” said Hamilton Oliveira Junior, general manager, Latin America, personal care, Ashland. “This investment is a key part of our globalization strategy and will serve as a source of differentiation as we innovate and position supply closer to our customers.” 

"We believe this is the ideal time to expand our operations and strengthen our presence in the region,” said Brenda Rangel, regional leader, Latin America, Ashland. “The pharmaceutical and personal care industries are in full evolution, and Ashland will continue being a strategic innovation partner for the industry, offering high-performance products and services."

To further institute organic growth for Ashland as well as customers, in 2023, Ashland introduced seven new platform technologies aligned to the company’s core that extend to secondary markets with new and differentiated capabilities.  Ashland’s platform solutions bring “new to the world,” sustainable innovations, offering choice to customers and consumers in personal care, pharmaceuticals, coatings and more, enabling customers to reshape global megatrends and respond to various regulatory landscapes worldwide. Ashland has introduced several patented innovations derived from the Transformed Vegetable Oils and Super Wetters platforms with more expected this year under additional platform technologies.  

To learn more, visit:
www.ashland.com/cab-platforms
www.ashland.com/cab-randdpg

About Ashland

Ashland Inc. (NYSE: ASH) is a global additives and specialty ingredients company with a conscious and proactive mindset for environmental, social, and governance (ESG). The company serves customers in a wide range of consumer and industrial markets, including architectural coatings, construction, energy, food and beverage, nutraceuticals, personal care, and pharmaceutical. Approximately 3,200 passionate, tenacious solvers – from renowned scientists and research chemists to talented engineers and plant operators – thrive on developing practical, innovative, and elegant solutions to complex problems for customers in more than 100 countries. Visit ashland.com and ashland.com/ESG to learn more.

⁺. data from IQVIA
^™ Trademark, Ashland, or its subsidiaries, registered in various countries.

Investor Relations Ashland:	Media Relations Ashland:
William C. Whitaker	Carolmarie C. Brown
+1 (614) 790-2095	+1 (302) 995-3158
wcwhitaker@ashland.com	ccbrown@ashland.com

Media Relations Ashland Brazil:

Cristina Friedman

+55 11 98318-2529

herrero.cristina@gmail.com

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• Ashland_Cabreuva_Brazil_expansion_completion_FNL_20250401

FAQ

What is the value and purpose of Ashland's (ASH) Brazil plant expansion?

Ashland invested $10 million to expand its Cabreúva pharmaceutical plant to meet increasing demand for coated tablets in Latin America and enhance microbial protection capabilities.

What is the tablet coating market growth rate in Brazil where ASH is expanding?

Brazil's coated tablet market grew by 5.7% annually between 2019-2023, while Latin America averaged 4.3% growth during the same period.

How many new platform technologies did Ashland (ASH) introduce in 2023?

Ashland introduced seven new platform technologies in 2023, focusing on sustainable innovations in personal care, pharmaceuticals, and coatings.

What capabilities are enhanced by ASH's new Brazil facility expansion?

The expansion enhances capabilities in tablet coatings application, color matching, stability evaluation, and microbial protection for personal care applications.