Cabot Plans to Invest in Elastomer Composites Facility in Malaysia

Cabot Corporation plans to invest in Elastomer Composites to fulfill growing demand in rubber and mining sector.

Malaysia: Cabot Corporation has announced its plan to invest at its Port Dickson facility in Malaysia for development of new products for application in rubber and mining sector. Cabot plans to strengthen its capabilities and broaden its existing customer reach. Elastomers produced at this facility would offer improved rubber properties for catering to OTR applications. The company has not disclosed the amount of investment at this facility. Cabot Corporation has been involved in the production of elastomers in Malaysia for around 10 years and this investment is expected to significantly boost its manufacturing capabilities in the country.

TechSci Research depicts that increasing investment in the elastomer division would strengthen the presence of Cabot Corporation in the Asia-Pacific region. Additionally, expanding elastomer industry of the country is projected to result in augmented demand for carbon black, which is widely used as a reinforcing agent in the rubber industry.

According to the recently published report by TechSci Research, “Global Carbon Black Market Forecast and Opportunities, 2020”, global carbon black market is expected surpass USD25 billion by 2020, driven by rising demand from tyre industry, in addition to construction and manufacturing sectors which use carbon black to provide strength to industrial rubber compounds and other equipment. Global carbon black market is highly competitive, with all major players investing heavily in R&D to improve the quality of their product. The three largest players in the market are Birla Carbon, Cabot Corporation and Orion Engineered Carbons. Region-wise, the market is dominated by Asia-Pacific, wherein majority of the demand emanates from emerging economies such as China and India, on account of expanding tyre manufacturing facilities and growth in construction sector.