Ceramic Industry News / Raw and Processed Materials

Cabot to Close Carbon Black Manufacturing Facility in Malaysia

April 30, 2013
KEYWORDS carbon black
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Cabot Corp. recently announced that the Board of its joint venture carbon black company, Cabot Malaysia Sdn. Bhd. (CMSB), has decided to cease carbon black production at its Port Dickson, Malaysia, facility by the end of July. Customer shipments from the plant are expected to continue for a period of time after production has been shut down. Cabot holds a 51% equity share in CMSB.

“We continuously evaluate how to best serve our customers, wherever they may have needs for our products and services around the globe,” said Dave Miller, president of the Reinforcement Materials Segment. “In order to do this profitably, we must make choices regarding our manufacturing assets. Cabot and the CMSB Board have reached the decision that our carbon black plant in Malaysia is not well-positioned to efficiently serve our customers in Southeast Asia on a long-term basis.”

The decision, which will affect approximately 90 employees, was reportedly made due to the facility’s manufacturing inefficiencies and raw materials costs. Cabot remains committed to engaging with customers currently served from the Port Dickson plant to determine how best to meet their needs during and after the shutdown of Malaysian production.

The closure of the plant is expected to result in one-time cash and non-cash charges to the joint venture of approximately $13 million and $15 million, respectively. Annual savings for the joint venture are estimated to be approximately $7 million.

For additional information, visit www.cabot-corp.com.

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