Cabot (Boston, Massachusetts / USA; www.cabot-corp.com) plans to expand its global carbon black production capacity by 300,000 t/y in response to rising demand from tire manufacturers. The company is expanding capacity at plants in China, Indonesia, Brazil and Argentina by the end of 2013, as well as adding capacity at three plants in Europe. Cabot expects the USD 180m (EUR 127m) investment to raise its global carbon black output by about 15%. Most of carbon black output is used by the rubber industry, primarily for automotive tires. Around 10% go into the plastics industry for UV stabilisers and masterbatches.

Patrick Prevost, Cabot’s president and CEO, pointed to rising global demand for carbon black, particularly in developing countries where he said mobility and transportation of goods is growing dramatically. “As a result, the global demand for tires is expected to increase by 5 to 10% annually over the coming ten years in these developing countries," he added. Executive vice president Dave Miller said the investments will help to help 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."

Cabot said the investments in Brazil and Argentina will increase its capacity in South America by approximately 20%. In Indonesia, the company is increasing capacity by about 50%, through a newly announced expansion project in Cilegon, and a previously announced expansion in Merak.

Debottleneckings in Europe will expand capacity by 10%, it said. In China, Cabot has entered into a joint venture with Risun Chemicals Co to build a joint venture carbon black facility in Xingtai. The new facility will expand Cabot's carbon black capacity in China by approximately 25%, with 130,000 t/y of capacity and the potential for expansion to 300,000 t/y.

Separately, Cabot provided an update on its Japanese facilities following the earthquake and tsunami (also see Plasteurope.com of 18.03.2011 and 14.03.2011). All employees in Japan are safe, it said, and the production facilities have sustained only minimal damage. The company said its carbon black plant in Chiba and tantalum powder facility in Aizu lost power and operations were temporarily suspended during the quake. “Both facilities are able to manufacture, however, supply chain and infrastructure disruptions over the coming weeks are likely to impact their ability to operate in the near term,” it stated. The carbon black facility in Shimonoseki continued production, Cabot added.