Indonesia: Expansion and Debottlenecking Cabot Raises Carbon Black Capacity to 300,000 Metric Tons
Through the combination of a plant expansion, operational improvements, and debottlenecking projects, Cabot is expanding its global capacity for carbon black by over 300,000 metric tons.
Boston/USA — The compan will add approximately 160,000 metric tons of capacity through an expansion at its facility in Cilegon, Indonesia. The new capacity will serve the increasing carbon black demand in Southeast Asia, which, according to the company, is growing at four to five percent per year. The manufacturer anticipates that product from this expansion will be available for sale starting in late 2020 or early 2021.
Jeff Zhu, president, Asia Pacific region, stated that the company's tire and industrial rubber customers were making significant investments in Southeast Asia, and that they were looking to Cabot to provide the raw materials for their new investments. He also appreciated the support of the Indonesian government since the company began operations in 1988.
In addition to the expansion at Cilegon, Cabot is investing approximately $ 50 million in debottlenecking projects and operational improvements across 18 of its carbon black facilities. This program will provide an additional 150,000 metric tons of increased carbon black capacity which will be available for tire, industrial rubber and specialty carbon customers. To date, the company has completed approximately one-third of this capacity expansion, with full completion expected by 2021. These investments are supposed to increase Cabot’s global carbon black capacity to approximately 2.5 million metric tons.