Tokai carbon black business reports lower volumes, higher costs

Tokyo – Tokai Carbon’s carbon black business has reported lower results in the first half of 2025, due in part to lower volumes and higher costs.

For the six months to end of June, the division reported a 20% year-on-year decline in earnings (EBITDA) to Yen13.0 billion (€75.5 million), on 5% lower sales of Yen75.5 billion, Tokai said 7 Aug.

According to the Japanese group, results varied depending on the site location, but overall, sales volumes declined due to “continued production adjustments by customers and other factors.”

Furthermore, sales prices also declined, contributing to lower first half revenue.

Operating income decreased 25% year-on-year to Yen8.1 billion, due to “declining margins and rising fixed costs.”

This, however, was 9% higher than the group’s forecast at the beginning of the year, when Tokai said it expected a Yen25 billion drop in earnings for 2025.

At the time, the group said it anticipated tire production to continue to grow steadily at an annual rate of 3%, supporting higher sales.

However, parallel operation of a new production base in Thailand alongside the existing facility is set to weigh on earnings until the third quarter of 2026, Tokai said.

The new plant in Thailand is scheduled to start operations by mid-2025, according to the Japanese group.