BOSTON—Cabot Corp. is planning to invest in a new fumed silica plant in Carrollton, Ky., a move that will extend the firm's long-term relationship with the Dow Corning division of Dow Chemical.
Sean Keohane, Cabot president and CEO, announced the expansion plans during the company's financial presentation Aug. 2, but did not expound on the size of the facility or the investment specifics.
The plant should be in operation by 2020.
The announcement comes on the heels of the June 7 ground breaking for the firm's new fumed silica manufacturing plant in Wuhai, China. Cabot holds an 80 percent stake in the project, which is being done with joint venture partner Inner Mongolia Hengyecheng Silicone Co. Ltd.
The $60 million project is scheduled to be completed in 2019 and is expected to produce 8,000 metric tons per year of fumed silica per year. Cabot will provide the production technology, while HYC will provide feedstock.
Financially, Cabot posted a strong third quarter, reporting a 46 percent jump in year-on-year earnings for reinforcement materials in the period that ended June 30.