Global investments set to boost Cabot carbon black capacity 15%
The recently announced joint venture between Cabot Corp. and China’s Risun Chemicals forms just one part of the American company’s plans to expand its global carbon black manufacturing capacity. On March 16 Cabot shared that it will invest more than US$180 million to this end between now and 2013. In addition to its as yet unnamed Chinese joint venture operation the company intends to expand capacity in Indonesia, Brazil and Argentina plus at three European facilities. In total these projects will increase Cabot's annual global carbon black output by about 15 per cent, or more than 300,000 tonnes.
“We are making investments in support of Cabot’s long-term strategy to grow in emerging markets,” said Patrick Prevost, Cabot president and chief executive officer. “We already have a strong presence in many of the fastest growing regions in the world. These investments will further accelerate our growth.” Investments in South America, specifically in Brazil and Argentina, will increase Cabot’s capacity in that region by approximately 20 per cent. In Indonesia, Cabot is increasing capacity by about 50 per cent through a newly announced expansion project at its Cilegon plant and a previously announced expansion in Merak. De-bottlenecking actions in Europe will expand capacity by ten per cent.
“Globally, the need for carbon black is increasing,” Prevost continued. “Mobility and transportation of goods is growing dramatically in developing countries around the world. As a result, the global demand for tyres is expected to increase by five to ten per cent annually over the coming ten years in these developing countries. Tyre manufactures need reliable partners to help them grow in these regions. Cabot is committed to being this kind of partner to our customers.”
Dave Miller, Cabot executive vice president, said these upcoming expansions will help solidify the company’s long-standing position as the leading global provider of carbon black “Our customers know they can rely on us to provide tailored, high-quality products and services. With these new investments, we’re taking action to help our customers grow anywhere in the world. We’re seeing our customers’ needs shift toward higher-performance grades of carbon black, especially in Europe. These investments will help address these needs.”
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