Cabot acquires Chinese carbon black manufacturer
Cabot Corp. has acquired Chinese carbon black manufacturing company NSCC Carbon (Jiangsu) Co. Ltd., from Nippon Steel Carbon Co.
The deal, according to Cabot, includes a 3-year-old carbon black production facility in Pizhou, China, that has a annual capacity of 50,000 metric tons per year. In its statement about the acquisition, Cabot said it would temporarily close the plant for maintenance and technological upgrades.
Cabot said it expects to spend about $50 million throughout the next two years to bring the plant up to speed. The total investment, the company said, includes the purchase price.
The bolt-on acquisition is intended to support Cabot's specialty carbons product line within its performance chemicals segment.
"The acquisition… will enable us to serve the growing needs of our specialty carbons customers worldwide," Sean Keohane, Cabot's president and CEO, said in a statement.
Tokyo-based Nippon Steel Carbon Co. is a subsidiary of Nippon Steel Chemical & Material Co.
- Tireworld Insight: Domestic tire makers eye overseas expansion
- Tireworld Insight: Price disparity severe between China's rubber exports and imports
- Tireworld Insight: China tire exports dependent on US market performance
- Tireworld Insight: SHFE rubber expected to move in tight range in short-term
- Tireworld Insight: Rubber futures to test near-term resistance at 15,000 yuan/tonne
- Tireworld Insight: China’s tire industry on track of rapid growth
