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February 03, 2004 12:00 AM

Cabot in Chinese fumed silica JV

ERJ Staff
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    By Patrick Raleigh, ERJ On-line news editor

    Boston, Massachusetts/ Beijing-Cabot (China) Ltd, a Cabot Corp. subsidiary, is setting up a fumed silica manufacturing joint venture with Bluestar New Chemical Materials Co., Ltd, part of the China National Bluestar Group.

    Cabot will own 90 percent and Bluestar 10 percent of shares in the JV, called Cabot Bluestar Chemical (Jiangxi) Company Ltd, according to a 2 Feb Cabot announcement.

    The venture will invest around $30 million to build what Cabot claims will be China's first “world class, fumed silica manufacturing unit. The plant will be located near Nanchang, in Jiangxi province, and is due for completion in late 2005.

    “Our experience in China over the years has been very positive. We're excited about this partnership with Bluestar and the opportunity to provide a long-term, reliable source of high quality material,” said Kennett Burnes, Cabot chairman and CEO, in a press statement.

    “This new facility, which will be built in close cooperation between Cabot and Bluestar, will become the first state-of-the-art fumed silica plant in China, and a great help to the growth of the Chinese silicone industry,” added Ren Jianxin, president of China National Bluestar Group.

    Cabot's plant in Jiangxi will become its sixth fumed silica plant worldwide. The US group already manufactures carbon black in China, at facilities in Shanghai.

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