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November 09, 2017 01:00 AM

Cabot boss expects 'solid growth' in American tire market

Shahrzad Pourriahi
European Rubber Journal
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    Joanne Smith, Headshots Photography
    Sean Keohane

    BOSTON—Cabot Corp. expects to see "solid growth" in the North American tire sector due to "long-term fundamentals" of the market, according to company CEO Sean Keohane.

    In a full-year results conference call on Nov. 2, Keohane said tire-plant investments were ramping up in North America with "a shift towards more local production [there] that will support growth rates in that range."

    Keohane went on to predict a "swing" into a period of 2-3 percent growth In North America. This, he noted, has not been the case throughout the past few years due to significant tire imports into the region.

    More generally, the Cabot boss said the global market for reinforcement materials remained "supportive," with strength in Europe driven by "solid demand and high utilization rates."

    In terms of emerging markets, Keohane said that South America continued to gain momentum across all product categories, as local economies slowly recover.

    For 2018, the Keohane forecast a general 2-3 percent growth range for carbon black and tire and rubber applications, with Cabot's volumes to grow in line with the market.

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