Cabot Corp. Announces Joint Venture with Inner Mongolia Hengyecheng Silicone Co., Ltd to Build State-of-the-Art Fumed Silica ...
September 12 2016 - 3:00AM
Business Wire
Cabot Corporation announced today that its wholly-owned
subsidiary, Cabot (China) Ltd., has signed a joint venture
agreement with Inner Mongolia Hengyecheng Silicone Co., Ltd (HYC),
to form a joint venture to manufacture fumed silica in China. Cabot
will hold an 80 percent share in the joint venture and HYC will own
the remaining 20 percent. The agreement was signed following a
ceremony on September 12th at the InterContinental Shanghai Ruijin
Hotel.
The joint venture will invest approximately $60 million to build
a world-class fumed silica manufacturing facility to be located in
Wuhai, China. The new facility will have a manufacturing capacity
of 8,000 metric tons of fumed silica per year. Subject to obtaining
the necessary governmental and regulatory approvals, construction
of the plant is expected to begin in early 2017 and will be
completed in 2019. The project will allow Cabot to meet the growing
demand for its high-quality, high-performance fumed silica, enabled
by a long-term reliable source of feedstock.
“Growing in our core is a key component of our new corporate
strategy, and today’s announcement is confirmation of our ongoing
commitment to this strategy. We are a market leader for fumed
silica, and this investment will further strengthen our position in
this core market,” said Sean Keohane, president and chief executive
officer, Cabot Corporation. “Cabot has achieved tremendous success
over the years in China, and we continue to see great opportunities
to innovate and support our customers while being a model for
sustainable production in China. We are partnered with a leader in
HYC, and through this partnership we will establish a world-class
fumed silica production site in China.”
“Through this planned investment, we will be able to further
strengthen our market leadership position for fumed silica and
promote growth in a variety of industries in China,” said Nick
Cross, executive vice president and president, Performance
Chemicals segment. “This joint venture will provide a catalyst for
growth in China and we look forward to serving local customers with
high-quality products and solutions while capturing growth in the
rapidly growing sectors of automotive, construction, renewable
energy and other industries.”
“We are pleased to partner with an industry leader and
innovator such as Cabot to build this state-of-the-art fumed
silica plant,” said Wang Yongquan, Chairman of Zhejiang Zhongcheng
Holding Group Co., Ltd, parent company of HYC. “Not only will we
have access to Cabot’s silica for use in our silicone compounding
operation, but we also will be able expand production efficiencies
through the utilization of a closed loop system.”
Cabot has had operations in China for almost 30 years, and
currently operates four manufacturing sites in Shanghai, Xingtai,
Jiangxi and Tianjin. The new plant in Wuhai will become Cabot’s
seventh fumed silica plant throughout its network in Asia, Europe
and the United States.
ABOUT CABOT CORPORATIONCabot 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, inkjet
colorants, cesium formate drilling fluids, fumed silica and
aerogel. For more information on Cabot, please visit the company’s
website at: http://www.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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160912005214/en/
Cabot CorporationVanessa CraigieMedia Relations,
617-342-6015
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