LEXINGTON, Ky. (LEX 18) — Ashland Inc. has announced that it will be moving its Kentucky-based headquarters from Covington to Delaware.
The chemical company also will close its Lexington offices, which employ 58 people. The estimated date of closure will be Dec. 31 of next year.
Ashland says some roles will be eliminated and others will be relocated to offices in Ohio or Delaware. A spokesperson with the company says that those whose positions are eliminated will receive enhanced severance benefits.
In 2017, Ashland spun off Valvoline into an independent company. Valvoline’s headquarters remain in Lexington.
An email was sent to the Ashland staff explaining the decision. You can read that in its entirety here:
"I picked up your message. Here is some information that may be helpful…
"Today Ashland Global Holdings Inc. announced plans to close its office in Lexington, Kentucky, and substantially downsize its headquarters office in Covington over the next 17 months as part of a previously announced plan to create a leaner, more cost competitive organization. In addition to lowering our costs, we believe these actions will provide several benefits, including quicker decision making, better collaboration across functions, and flexibility in sharing resources.
"As part of the company’s ongoing redesign process, Ashland plans to relocate its corporate headquarters from Covington to Wilmington, Delaware, effective January 1, 2020. In line with that decision, the company will be significantly downsizing the Covington office – which currently employs 48 people — over the next 17 months. Some roles will be eliminated, while others will be relocated to Dublin (OH) or Wilmington (DE), both of which are locations with an existing Ashland presence. Approximately 15 positions will remain in Covington for a time after the headquarters relocation to ensure efficient operation of the redesigned Ashland.
"Ashland plans to close the Lexington office as of December 31, 2019. The Lexington office currently employs 58 people. Similar to Covington, some roles will be eliminated, and others will be relocated to Dublin or Wilmington prior to that date. A few employees will also work remotely.
"Site meetings were held earlier today in both Covington and Lexington, as well as individual one-on-one employee meetings. Ashland will be providing enhanced severance benefits to those employees whose roles are eliminated.
"Decisions like this are always difficult, as they involve talented individuals who have contributed so much to Ashland over the years. Our company would not be where we are today without the commitment and support of these colleagues.
"Ashland will continue to maintain a large workforce in Kentucky. The company’s largest global manufacturing plant is in Calvert City, Kentucky. The plant employs approximately 515 people."