Birla Carbon adding two plants in Asia

MUMBAI, India—When Birla Carbon invests, it does so with purpose.

So when the Mumbai-based manufacturer of carbon black and carbonaceous products says it's prioritizing investments in two new Asian factories, it's worth paying attention.

The company Jan. 19 detailed plans to bring online two greenfield manufacturing sites—in Niadupet, India, and Rayong, Thailand—to better support customer growth industry-wide and ensure a more stable supply of more sustainable products.

"Certainly the demographics in Asia drive the highest growth in demand," Birla Carbon President and CEO John Loudermilk told Rubber News in a recent, exclusive interview, in which he discussed the company's vision for growth. "… And when we look at expansion, it is really driven by our customer demands."

When it comes to customer demand, look no further than Asia.

"I think, you will—long term—see the largest growth in capacity in that part of the world, whether that is India, Southeast Asia or China," Loudermilk said. "We are the largest player in Asia outside of China, and we would expect to continue to be that over the long term."

Birla Carbon's greenfield investments are proof of how seriously it takes maintaining that place.

According to a Jan. 19 news release, the greenfield sites, expected to come online in 2025, will have 120,000 metric tons of carbon black capacity to start. Birla Carbon intends to double production capacity at the sites when market demand requires it and as customer expectations evolve.

The rise of EVs and their impact on tires, along with the growth of lithium-ion battery production worldwide, are dynamics shaping the carbon black market. But those demands also are wrapped in a pair of expectations. Namely, customers across the globe want more sustainable products, and they want a secure, more local supply of that product.

That is what Birla Carbon intends to deliver.

"Those global customers want local access to material, so this localization trend that you see in the global economy is fairly evident in the carbon black side, primarily for security supplies—and in some cases, cost reasons—but primarily, security supply is a key parameter that our customers desire in terms of local production," Loudermilk said.

Birla Carbon, in detailing its greenfield expansion plans in Asia, did not specify which products would be manufactured at the sites. It did note, however, that the projects take precedence, given the rate of growth for carbon black in the region.

The company was also quick to note that it has not abandoned its brownfield expansion plans in India or Hungary. Both of those projects continue to move forward.

In Hungary, Birla Carbon is adding lines and it is continuing to expand its operations across India, according to Loudermilk, who noted the projects are "at rather advanced stages." Moreover, he emphasized that Birla Carbon will continue to invest in both greenfield and brownfield expansions globally as needs and opportunities arise.