Tokai carbon black earnings up despite weaker tire demand

Tokyo, Japan – Tokai Carbon has reported higher sales and operating income in its carbon black business for the first nine months of 2026, supported by its newly consolidated operations in Thailand.

Net sales for the January–September period increased 16.6% year-on-year to Yen129.4 billion (€730 million), while operating income rose 6.4% to Yen12.4 billion.

Earnings (EBITDA) increased 20.2% year-on-year to Yen23.2 billion, from Yen19.3 billion a year earlier.

The Japanese group said carbon black sales volumes had declined due to "production adjustments" among tire manufacturers, although the impact was offset by the development of new customers and spot transactions.

Sales and earnings increased following the contribution of former Bridgestone subsidiary in Thailand, which was consolidated in the latter half of 2025. (ERJ report)

In addition, Tokai noted “higher depreciation expenses” following the launch of the new carbon black plant in Thailand.

Tokai launched the construction of the new 180ktpa carbon black facility in Thailand in 2023 (ERJ report), with operations originally set for April 2025.

Trial production began in June 2025, with full relocation of production from the existing Thai plant subsequently scheduled for "the latter half of 2026".

According to the group's earnings presentation, foreign exchange contributed Yen6.1 billion to the increase in net sales, while higher selling prices added Yen4 billion.

Operating income benefited from improvements in volumes, margins and foreign exchange, partly offset by “other costs.”