Cabot Commissions World’s Largest Carbon Black Plant

Cabot Corporation today (23 October 2009) commissioned 150,000 metric tons of manufacturing capacity at its carbon black facility in Tianjin, China. The plant is now said to be the world’s biggest with annual production capacity of nearly 300,000 metric tonnes. Cabot share rose 4.52 per cent to US$24.72 in response to the news. The giant manufacturing project is being conducted by Cabot Chemical (Tianjin) Co., Ltd., an equity joint venture between Cabot (China) Limited, and Shanghai Coking Chemical Company, a member of the Huayi Group. Cabot and Shanghai Coking have been joint venture partners since 1988.

According to the company’s 2008 annual report, in 2007, 2007 and 2008 Goodyear Tire & Rubber Company accounted for 12 per cent, 12 per cent and 14 per cent of Cabot’s annual consolidated net sales. No other customer individually represented more than 10 per cent of net sales. In total tyre manufacturers spent $320 million with Cabot, according to the company’s accounts receivable data, more than double the $169 million they spent in 2007.

Commenting at the official ceremony marking the Tianjin start-up, Cabot president and CEO Patrick Prevost said: “Cabot is pleased with the successful start-up of this capacity. It makes Tianjin the largest and most technologically advanced carbon black manufacturing site in the world. The continued support of officials in China and the dedication of our highly skilled local workforce have made this possible. China is a key geography in Cabot’s future growth and this facility is a critical asset to allow us to meet customers’ strong demand for high quality carbon black products.”

With sales totalling nearly US$2 billion (60 per cent of total sales of just under $3.2 billion), carbon black destined for use in rubber represents Cabot’s biggest product segment, way ahead of performance products and inkjet colourants.

Shanghai Coking & Chemical Corp was founded in 1958, and is one of the largest manufacturers of methanol and coke products in China.