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April 27, 2016 02:00 AM

Cabot optimistic on carbon black market

Mike McNulty
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    A look at one of Cabot's carbon black facilities.

    BOSTON—Demand for carbon black likely will grow in 2016.

    At least that's the view of Sean D. Keohane, the recently named president and CEO of Boston-headquartered Cabot Corp., the global specialty chemicals and performance materials company and a global leader in the production and supply of carbon black.

    “Our view is that global black demand will grow by 2 percent to 3 percent in the 2016 calendar year,” he said. “The expected carbon black growth will be driven by stronger light vehicle sales globally, offset partially by somewhat weaker demand for truck and bus tires, particularly in emerging markets.”

    He said Cabot is well positioned to remain part of the growth with its network of global assets and strong customer relationships.

    “In addition,” Keohane said, “we are seeing industry changes based on increased environmental regulations, energy saving initiatives and growing durability requirements, which provide growth opportunities for more specialized carbon products.”

    Cabot already has developed new products to address those opportunities across the battery, tire, adhesives, plastics and industrial rubber products sectors, he said.

    “Beyond those opportunities for growth,” Keohane said, “our industry is faced with ever increasing environmental pressures in terms of emissions control.”

    He said Cabot has seen consistent trends to lower air emissions everywhere it operates. “In order to support our customers over the long term, we are leading the effort to develop environmental solutions.

    “For example, we were the first carbon black producer in the U.S. to commit to implement advanced emissions controls across our network of plants. We view this as an important commitment to our customers and the communities in which we operate.”

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