ERJ staff report (DS)
Xingtai, China - Cabot Corp. and joint venture partner Risun Chemicals Company, Ltd., has broken ground on its new carbon black manufacturing facility in Xingtai, China. The project, announced in March 2011, is scheduled to be completed in mid-2013, and will further solidify Cabot's position as the world's No. 1 producer of carbon black.
Cabot and Risun are investing approximately $140 million in the new facility, with Cabot owning a 60-percent equity interest. The facility will have a Phase I manufacturing capacity of 130,000 metric tons of carbon black per year, and will enable Cabot to increase its carbon black manufacturing capacity in China by 25 percent.
The new facility, located about 250 miles (400 kilometers) south of Beijing in Heibei Province, will help support tyre and automotive growth in China. Carbon black is a reinforcing agent essential in the manufacturing of tyres. The material is also used in many automotive parts, including adhesives and sealants, battery materials, coatings, and more. According to IHS Automotive, China's motor vehicle fleet is expected to grow to approximately 315 million vehicles over the next 10 years, up from 102 million vehicles today. Cabot's industry-leading carbon black products will help to meet the needs of the tyre and automotive segments in China.
"Our customers are increasingly demanding high performance materials to make their products more efficient," said Dave Miller, president, Core Segment. "Our plant in Xingtai will be designed to deliver high performance carbon black products that are engineered to meet China's emerging demand for higher performance reinforcing materials for tyres and industrial rubber products."
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Press release from Cabot