Cabot Corporation Breaks Ground on Specialty Compounds Facility in Indonesia

Rhea-AI Summary

Cabot Corporation (NYSE: CBT) has announced the groundbreaking of a new specialty compounds facility in Cilegon, Indonesia, which will add 20,000 metric tons of annual capacity for specialty compounds. The facility aims to meet rising demand in the masterbatch and conductive compounds market, driven by economic growth and increased production of electrical devices. Highlighting sustainability, Cabot plans to utilize the latest technology and energy reuse strategies in the facility, aligning with its goal of achieving net zero carbon emissions by 2050.

Positive

• New facility will add 20,000 metric tons of global capacity.
• Supports growing demand for specialty compounds in Southeast Asia.
• Utilizes state-of-the-art technologies for energy efficiency and reduced waste.
• Advances goal of achieving net zero carbon emissions by 2050.

Negative

• None.

Project adds 20,000 metric tons of global capacity

BOSTON--(BUSINESS WIRE)-- Cabot Corporation (NYSE: CBT) announced the groundbreaking of a new specialty compounds facility in Cilegon, Indonesia. The new facility is co-located with Cabot’s existing carbon black manufacturing site and will add 20,000 metric tons of annual global capacity for specialty compounds, including black masterbatch and conductive compounds. It is expected that the facility will be operational at the end of 2022.

The new capacity will provide a reliable, local supply to support the increasing need for specialty compounds in the rapidly growing masterbatch and conductive compounds market in Southeast Asia and globally. This demand is driven by economic growth in the region as well as the evolving mobility landscape, increases in sustainable infrastructure developments and a rise in the production of electrical devices to support global connectivity needs.

The specialty compounds facility will incorporate Cabot’s latest technology advances into the plant design and operations. Additionally, being co-located with Cabot’s existing carbon black facility will enable Cabot to utilize integrated site economics through manufacturing efficiencies and reduced waste, including the use of recovered waste-heat energy from the carbon black facility. This will reduce the environmental impact of the project in alignment with Cabot’s recently announced ambition to achieve net zero carbon emissions globally by 2050.

“As a global leader in black masterbatch and conductive compounds, we are pleased to break ground on this new facility to expand our global reach and better serve our customers in the region and around the world,” said Aaron Johnson, senior vice president and president, Formulated Solutions. “This new facility will enable us to meet the growing needs of our customers for innovative solutions that improve performance of their products and support their sustainability needs. Furthermore, we are proud that this facility will incorporate state-of-the-art technologies and energy reuse to help us achieve our sustainability goals and net zero ambitions.”

“For more than 30 years, we have developed a strong presence in Indonesia with our carbon black facility and the support and partnership of the Indonesian government. We are excited to expand our footprint in the Cilegon community with our new masterbatch plant and continue to contribute to the economic development in Indonesia,” said Dixy Olyviardy, managing director, Cabot Asia Pacific South and president, Cabot Indonesia. “This investment is a testament to our ongoing commitment to deliver innovative and high-quality products that support the needs of our customers and address the key sustainability challenges of today’s world.”

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 rubber and specialty carbons, activated carbon, elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed silica and aerogel. For more information on Cabot, please visit the company’s website at cabotcorp.com.

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: https://www.businesswire.com/news/home/20220215005341/en/

Emily Moran

Corporate Communications

emily.moran@cabotcorp.com

(617) 460-4517

Steve Delahunt

Investor Relations

steve.delahunt@cabotcorp.com

(617) 342-6255

Source: Cabot Corporation

FAQ

What is Cabot Corporation's recent announcement regarding the CBT stock?

Cabot Corporation announced the groundbreaking of a new specialty compounds facility in Cilegon, Indonesia, which will increase its annual capacity by 20,000 metric tons.

How does the new facility impact Cabot Corporation's sustainability goals?

The new facility will incorporate advanced technologies to reduce waste and utilize energy efficiently, supporting Cabot's aim to achieve net zero carbon emissions by 2050.

When is Cabot Corporation's new facility expected to be operational?

The new specialty compounds facility is anticipated to be operational by the end of 2022.

Why is Cabot expanding its production capacity in Indonesia?

The expansion is driven by increasing demand for specialty compounds in the growing masterbatch and conductive compounds market in Southeast Asia.