Carbon black maker Cabot Corporation has broken ground on 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 tonnes/year of 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 utilise 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.”