ERJ staff report (BC)
Boston, Massachusetts – Cabot Corporation has announced that the board of its joint venture carbon black company, Cabot Malaysia Sdn. Bhd. (CMSB), will stop carbon black production at its Port Dickson, Malaysia, facility by the end of July 2013.
The decision, which will affect approximately 90 employees, is attributed to manufacturing inefficiencies and raw material costs.
The closure of the plant is expected to result in one-time cash and non-cash charges to the joint venture of approximately $13m (€10m) and $15m (€11.5m), respectively. Annual savings for the joint venture are estimated to be approximately $7m (€5.4m). Cabot owns 51 percent of the CMSB joint venture.
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