MELBOURNE, Australia (Oct. 4)—Cabot Corp. has ceased production of carbon black at its Altona, Australia, plant but said it would continue to supply customers in Australia and New Zealand through its distributors there.
Cabot had announced in November 2004 it would close the 45,000-metric-ton-per-year Altona plant because of slackening domestic demand and raw material supply problems. At the same time it said it would debottleneck other plants throughout Asia to make up for the lost production and build a plant in Tianjin, China.
Cabot did not say how many employees were affected. Earlier it had said shutdown would result in an after-tax charge to earnings of about $12 million over two years, including cash outlays of around $5 million. Cabot also said it anticipated a payback on the Altona closing costs in less than two years based on reduced operating costs from running fewer plants.