BOSTON—Cabot Corp. has resumed a project to expand its carbon black production plant in Cilegon, Indonesia, and expects to complete the project later this year.
The company broke ground on the estimated $100 million project to add capacity for the production of 80,000 metric tons per year of rubber black grades at its existing site in Cilegon in 2019.
It suspended the investment in 2020, however, after a review of its capital allocation priorities.
The company now restarted work on the project and anticipates the additional capacity to become available by mid-2025, Cabot announced in December.
The expansion will nearly double the plant's capacity, enabling it to supply to the local market with shorter lead times.
Cabot is the only reinforcing carbons producer in Indonesia, according to Bart Kalkstein, executive vice president and president of the company's Reinforcement Materials segment and president of the Americas region.
And Southeast Asia is the world's fastest growing market region, which is currently "short of capacity and relying on imports," he added.