Cabot close carbon black production unit in Indonesia

Cabot to close carbon black production unit in Indonesia

7:18 AM, 16th November 2015
Cabot to close carbon black production unit in Indonesia

BOSTON, US: Cabot Corporation said it will close its carbon black manufacturing facility in Merak, Indonesia and the decision is said to affect approximately 50 local employees. It is anticipated that the operations will cease by January end.

Cabot’s closure plan will result in a pre-tax charge to earnings of approximately $33 million, of which approximately $8 million of this amount is cash and $25 million is a non-cash charge. Annual savings related to the closure are estimated to be approximately $8 million, of which approximately $5 million is in cash, it said.

“The decision to consolidate manufacturing across Asia Pacific is a critical step in our plan to ensure that we operate efficiently to become more competitive in a challenging environment, and to accelerate future growth,” said Sean Keohane, president, reinforcement materials segment, Cabot.

“We wish to recognize our colleagues in Merak, who have worked diligently over the years to take care of our customers and keep the facility operating as competitively as possible,” said Jeff Zhu, president, Cabot Asia Pacific region.

© Worldofchemicals News



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