ERJ staff report (RPN/LMH)
New York — Asia Carbon Industries Inc. said its conversion of carbon black production from a commodity to a specialty grade is on schedule for a third-quarter launch, according to Rubber & Plastics News .
The Chinese company said while the change has impacted its operation results, it expects to see returns on the investment as soon as production restarts, since specialty grades of carbon black cost about $2,400 per ton, compared to $1,000 for commodity grades.
Net sales for the quarter ended 31 March 2013 were $5.96 million, 53% lower from the same period in 2012. Net income for the quarter was $390,000, a decrease of 78% from 2012.
"We undertook this project to better serve our primary customer, tire manufacturers, particularly those that produce higher quality tires," said Yao Guoyun, Asia Carbon chairwoman and CEO. "China is not only the world's largest producer of tires, it is also the largest consumer, and we believe our ability to offer our customers a higher grade product positions Asia Carbon to fully participate in this thriving market."
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Article from Rubber & Plastics News
News release from Asia Carbon