China overtakes N America to become Cabot’s largest market

Shanghai, China – China has leapfrogged North America to become Cabot Corp.’s largest single market, accounting for about 25% of the group’s global sales, the carbon black maker reported.

The country, together with the wider Asia Pacific region, now drives nearly 40% of Cabot’s business, added president and CEO Sean Keohane, describing the market as “central” to its long-term strategy.

Speaking to the Chinese media earlier in July, Keohane said the global economy was marked by “unprecedented complexity” from geopolitical tensions, trade policy shifts and supply-chain restructuring.

“While the US economy faces downward revisions to growth expectations, strong consumption and innovation will underpin long-term development,” the Cabot leader forecast.

China, he noted, holds “clear advantages” in sectors such as new-energy vehicles, energy storage and 5G technologies.

The challenge for Cabot is to “balance current structural overcapacity with the pace and process of high quality development,” Keohane continued.

Cabot entered China in 1988 and now operates its Asia Pacific HQ – including its regional tech centre and global business services centre and manufacturing facilities – in the country.

“Our localisation strategy has been in place for decades,” Keohane said. “Trade tensions have only reinforced the importance of producing close to our customers.”

China’s “dual carbon” targets, he added, are accelerating the shift toward high-value, speciality materials: an area where Cabot’s battery materials products are “well aligned” with national priorities.

Cabot, said Keohane, is expanding capacity for battery materials, deepening research ties with leading Chinese universities, and digitising local production to enhance quality and reliability.

“While we face short-term challenges, we remain optimistic about the long term potential of the global economy,” said the president and CEO.

“We will continue to invest in China and support Chinese customers as they go global,” he added.

In a statement to ERJ regarding its rubber/tire industry-related activities in China, Cabot said it was "committed to meeting the evolving needs of our rubber customers, both now and in the future."

As part of this, the company is "continuously evaluating" its reinforcing carbons capacity to ensure security of supply.

"We are closely monitoring market demand and remain prepared to adjust capacity levels, as necessary," Cabot's statement concluded.