BOSTON (June 12) — Cabot Corp. said it will close its carbon black production facility in Waverly, W.Va., in March 2008 because of changes in the tire manufacturing industry. Customer shipments from the plant will continue through mid-2008.
Cabot said during the past 18 months there has been multiple tire capacity reduction in North America and expansion of production in other regions, including China, other Asian Pacific countries and South America. These changes are causing the carbon black maker to adjust its North American carbon black capacity to maintain its competitiveness.
The company said it is debottlenecking several of its carbon black factories in North America to continue to meet customer demands.
Cabot expects the closing to result in a pre-tax charge of about $22 million over the next two years, with $8 million of that during fiscal year 2007. It did not disclose how many jobs will be lost in Waverly.