Cancarb investing €35 million to expand capacity

Medicine Hat, Alberta – Cancarb Ltd is investing $40.1 million (€35 million) to expand thermal carbon black production capacity at its Medicine Hat production plant

The Canadian subsidiary of Tokai Carbon Co. Ltd is planning to add a sixth production unit at the site, to raise capacity by 9 kilotonnes per annum (ktpa).

The company is currently completing the final engineering and tendering process, said VP for quality and development Ross Buchholz.

Construction work is tentatively set to start in April with completion planned for the summer 2020.

The company purchased the warehouse adjacent to the plant earlier in 2018 with the intent to refurbish it for this project, Buchholz said.

The $40.1 million cost includes the warehouse and land purchase.

Cancarb produces and markets thermal carbon black in more than 40 countries.

The company's facility currently has five thermal carbon black units with a total capacity of 45ktpa.

The sixth unit will produce Cancarb's signature grades of its Thermax-brand medium thermal carbon black.