January 18, 2025 – Cabot Corporation Reboots Expansion of Carbon Black Plant in Cilegon, Indonesia
Cabot Corporation has recently announced the reboot of its expansion project for the carbon black plant located in Cilegon, Indonesia. The project, initially launched in 2019 at the existing site in Cilegon with the aim of increasing carbon black production capacity by 80,000 tonnes per annum, was temporarily suspended due to adjustments in the company’s capital allocation strategy in 2020. However, on December 4, 2024, during an investor day event, Cabot Corporation delivered the good news of the project’s reboot, with the new capacity expected to commence operations in mid-2025.
According to Cabot Corporation, the expansion will double the carbon black production capacity of the Cilegon plant, significantly enhancing the speed of supply to the local market. The expansion project, which has been under the spotlight of the industry since its announcement in 2019, is expected to have a total investment of USD 100 million.
AsiaMB has learned that Bart Kalkstein, Executive Vice President and President of Performance Materials and Americas at Cabot, stated in his speech that as the only producer of reinforced carbon in Indonesia, Cabot plays a vital role in Southeast Asia, one of the fastest-growing market regions globally. Currently, there is a significant gap in carbon black production capacity in Southeast Asia, with a high dependence on imports. Therefore, the smooth progress of this expansion project will not only further boost Cabot’s production capacity but also consolidate its leading position in the Southeast Asian market.