BOSTON--(BUSINESS WIRE)--
(NYSE: CBT) announced that it has acquired NSCC Carbon (Jiangsu) Co., Ltd. from Nippon Steel Carbon Co., Ltd., a subsidiary of Nippon Steel Chemical & Material Co., Ltd. The carbon black manufacturing facility in Pizhou, Jiangsu Province, China, was originally commissioned in 2015.
Cabot has been actively exploring and implementing opportunities to increase capacity in its global carbon black network through plant expansions, operational improvements and debottlenecking projects. This bolt-on acquisition will further support Cabot’s growth objectives and broaden its capabilities to serve customers in China. The 50,000 metric ton plant will support Cabot’s specialty carbons product line within the Performance Chemicals segment.
“This acquisition showcases the continued execution of our ‘Advancing the Core’ strategy,” said Cabot President and Chief Executive Officer Sean Keohane. “It will not only strengthen our global leadership position in carbon black, but also enable us to continue to serve the growing needs of our specialty carbons customers worldwide. With our plants operating at high utilization levels, this acquisition will enable us to continue to be the partner of choice for our customers in key growth markets.”
President of Nippon Steel Carbon Co., Ltd., Shunichi Sakai, said, “We are pleased to transfer the business to Cabot that is the leader in the carbon black industry.”
The plant is scheduled to be temporarily mothballed to conduct maintenance and technology upgrades. The upgrades to manufacturing and environmental equipment will enable the site to be more flexible to manufacture different carbon black products and meet ever-stricter environmental standards.
The purchase price, which is payable upon satisfaction of certain conditions, and the equipment and technology upgrades are expected to result in spending of approximately $50 million over the next two years.
ABOUT CABOT CORPORATION
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company, headquartered in Boston, Massachusetts. The company is a leading provider of and , , , , , , and . For more information on Cabot, please visit the company’s at: .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in the press release regarding Cabot’s business that are not historical facts are forward looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward looking statements, see “Risk Factors” in the Company’s Annual Report on Form 10-K.
View source version on businesswire.com:
