Cabot forms joint venture to build carbon black facility in China
Cabot Corp (NYSE:CBT) has signed a joint venture with Risun Coal Chemicals Group to construct a carbon black manufacturing facility in Xingtai City, China.
The joint venture, in which Boston-based Cabot will hold a 60% interest, will invest $100 million into the new facility, which will produce the black material used as a reinforcement in rubber and other specialty products.
"This investment builds on our strong position in China, where demand for carbon black continues to grow. Our investment will further build our presence in the region," said Cabot president and CEO Patrick Prevost.
Once commissioned in early 2013, the Xingtai facility will produce approximately 130,000 metric tons of carbon black annually, with the potential for expansion to 300,000 metric tons.
The joint venture between the two companies is supported by the Xingtai and China governments.
Cabot's major products are carbon black, inkjet colorants, aerogel and capacitor materials, among others.
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