Cabot Commissions Tianjin Plant

On Friday, Cabot officially announced the commissioning of 150,000 metric tons of manufacturing capacity at its carbon black facility in Tianjin, China, bringing the plant’s annual production capacity to nearly 300,000 metric tons. The manufacturing facility is a project of Cabot Chemical (Tianjin) Co., Ltd., an equity joint venture between Cabot (China) Limited, and Shanghai Coking Chemical Company, a member of the Huayi Group. Cabot and Shanghai Coking have been joint venture partners since 1988.

Here is the full announcement.

Goodyear to Close Spartanburg

Goodyear has announced that it plans to close its plant in Spartanburg, South Carolina by the end of the year. The plant, which employs about 90 people, produces retread material for commercial truck and aircraft tires. According to a Goodyear statement, the production will be incorporated into other Goodyear facilities in the US.

ASTM Updates Carbon Black OAN Standard

From European Rubber Journal (subscription required) comes word that the US Standards body, ASTM, has updated ASTM D2414 to D2414 – 09a. Standard Test Method for Carbon Black—Oil Absorption Number (OAN). The oil absorption number of a carbon black is related to the processing and vulcanizate properties of rubber compounds containing the carbon black.

Here is the listing.

Tire Recycling Plant Opens

Carbolytic Materials Co. L.L.C. has announced that its tire recycling plant in Maryville, Missouri has opened. The plant recycles tire scrap to produce a carbon black alternative called ApexCM™ that the company says is suitable for commercial use as a lower-cost, carbon black replacement in applications such as hoses, gaskets, belting, roofing materials, and plastic piping, among other products.

This blog previously wrote about the Carbolytic Materials plant here.

In October 2008, the company received $12.4 million in financing from the Missouri New Markets Development program, which enabled the company to build the new manufacturing facility in rural Missouri. The plant employs 30.

The plant has a capacity of more than 15,000 tons of used tires annually. According to the company, each ton of carbon black replacement it produces represents 380 recycled tires, 760 gallons of oil saved and 3,800 pounds of carbon dioxide emissions kept out of the atmosphere.

Here is the press release.

Upcoming Conferences

A list of upcoming conferences at which Notch will be presenting:

Carbon Black 2009 – Perspective in Asia Pacific
Location: Bangkok, Thailand
Dates: November 18-20, 2009

Tire Technology Expo 2010
Location: Cologne, Germany
Dates: February 9-11, 2010

Carbon Black China 2010
Location: Chongqing, China
Dates: April 18-21, 2010

Michelin Issues Cautious Outlook

From the Wall Street Journal (subscription required):

The recent world economic recovery is shaky and could soon fade, one of Michelin’s non-general managing partners said Wednesday.

Despite “the euphoria we have seen in the past weeks…we never had these signals [of recovery] and we still don’t have them,” Jean-Dominique Senard said in an interview. “The prospects in the coming weeks are not good.”

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The Cash for Clunkers programs in the US and Europe have undoubtably benefited third quarter tire demand, and with inventories so low, that has translated into stronger production levels. But the question of the hour is whether demand will hold after November. Without a more sustained recovery in consumer spending, the third quarter recovery will become a blip in a continuing downturn.

Toyo Moving Production from China to Japan Due to US Tariffs

Tire Business (subscription required) is reporting that Toyo Tire & Rubber Co. Ltd. will move production of consumer tires it makes in China for export to the U.S. to plants in Japan in response to the Obama administration’s decision to impose higher tariffs on Chinese-made passenger and light truck tires.

Toyo sources tires for the U.S. market from Cheng Shin-Toyo Tire & Rubber (China) Co. Ltd., its former joint venture plant in Kunshan, China. Toyo and Taiwan’s Cheng Shin Rubber Ind. Co. Ltd. set up the joint venture in 1995, but Toyo disclosed in early September it is selling its share in the venture and instead will build its own plant in China.

Cooper Breaks Ground on Tupelo Expansion

On Tuesday, September 22, Cooper Tire & Rubber held a groundbreaking ceremony for a $7 million expansion of its tire plant in Tupelo, Mississippi. The plant currently occupies more than 1.6 million square feet and employs more than 1,250 people. Construction is set to begin this month on a 32,000-square-foot addition, which will include a new mixer as well as a new mixing building. The project is expected to be complete by April 2010.

Pat Jodon, Plant Manager for the Cooper Tire Tupelo, Miss., facility, said, “This expansion will enable Cooper to produce more technologically advanced products and will enable the Company to improve the competitiveness of its operations.

Here is the press release.

India Changes Import Policy for Carbon Black

On September 9, 2009, India’s Department of Commerce issued a notification (DGFT Notification No 08/2009-2014, Import Policy of Carobn black and Other, polyesters) that it had amended the import classification for carbon black, putting it on an open general license, or free policy. In other words, imports of carbon black are no longer restricted.

Upon first hearing of this decision, it seemed to me to be in conflict with the Department of Commerce’s decision at the end of July to impose anti-dumping duties on carbon black imported from Australia, China, Russia, and Thailand. However, a source at an Indian carbon black supplier explained to me that the two announcements are part of the same policy.

Prior to the imposition of anti-dumping duties, imports of carbon black were restricted. In order to implement the anti-dumping duties, however, the status of carbon black had to be changed to ‘free,’ as the duties cannot be imposed on a restricted product. As such, imports from Australia, China, Russia, and Thailand will be permitted but subject to the anti-dumping duties, which range from US$ 0.078 per kg to US$ 0.195 per kg based on the country of origin and the specific exporter. The duties will be in place through January 29, 2010.

This policy makes the anti-dumping duties something of a mixed blessing for India’s carbon black industry. On the one hand, imports from the four targeted countries will be subject to the duties. On the other hand, imports from any other country will no longer be restricted and will not be subject to the duties.

Cabot Announces Management Changes

On September 9, Cabot Corporation announced two management changes. David A. Miller will replace William Brady as General Manager, Core Segment, effective September 14, 2009. Cabot’s Core Segment includes its commodity businesses, including rubber blacks and supermetals. Mr. Miller comes from BP p.l.c., where he held a variety of management positions in BP’s chemical businesses over the last 27 years. Most recently, Mr. Miller served as President, Aromatics Asia, Europe & Middle East.

In the other management change, Nick Cross will replace Dirk Blevi as the Regional General Manager of the Europe, Middle East and Africa (“EMEA”) region, effective September 14, 2009. Mr. Cross also comes from BP p.l.c., where he held a variety of management positions primarily in BP’s chemical businesses as well as in its oil and gas business.

Here is the press release.