Ashland Inc. will shut down its Hercules Water Technologies plant in Hattiesburg by the end of the year, leaving 21 workers without jobs.

The Covington, Ky.-based company cited the economic recession and dwindling operating efficiency.

Company spokesman Ken Gordon says Ashland was consolidating some of its assets, including the Hattiesburg plant.

Gordon says the 21 employees will be given a severance package when the plant closes.

Gordon says Ashland will reduce production beginning in July and transfer manufacturing to other facilities.

The Hattiesburg plant currently manufactures paper sizing products for use in tissue manufacturing.

Hercules Inc. was purchased by Ashland Inc. in a $2.6 billion merger agreement in July 2008. The Hattiesburg plant was built in 1923 and employed 1,400 at its peak.