Asia Carbon announces Q1 earnings, facility conversion

AsiaChina-based carbon black products producer Asia Carbon Industries, Inc. announced its earnings for the quarter ended March 31, 2013.

The Company, whose shares trade in the US on the OTCQB Tier of the OTC Markets under the stock symbol “ACRB”, filed its quarterly report on Form 10-Q with the Securities and Exchange Commission on May 15, 2013.

Yao Guoyun, Asia Carbon’s Chair of the Board and CEO commented on the result, “Asia Carbon has dedicated the past six months to complete conversion of our manufacturing facilities from commodity grade to specialty carbon black production. Although this has impacted our operating results during this period, we expect to see returns on this investment as soon as the new production goes online in the third quarter, as specialty carbon black commands prices ranging upwards of US$2,400 per tonne while traditional carbon black is typically sold for less than US$1,000 per tonne.”

Yao said that the project aims at serving their primary customer – the tyre manufacturers, particularly those that produce higher quality tyres.

“China is not only the world’s largest producer of tyres, it is also the largest consumer, and we believe our ability to offer our customers a higher grade product positions Asia Carbon to fully participate in this thriving market,” she quips.