November 20, 2015

　　Cabot Corporation announced that it will consolidate carbon black production in Asia by ceasing production at its manufacturing facility in Merak, Indonesia, and using other Asian and global carbon black sites to meet regional demand. The company plans to cease operations at the Merak site by the end of January 2016.

　　“To be successful over the long term, we must continue to focus on improving profitability through cost savings and increased operational efficiency while also producing the highest quality products that meet our customers’ needs,” said Sean Keohane, president, Reinforcement Materials Segment. “The decision to consolidate manufacturing across Asia Pacific is a critical step in our plan to ensure that we are operating as efficiently and effectively as possible to become more competitive in a challenging environment, and to accelerate future growth.”

　　The decision, expected to affect approximately 50 local employees, was driven by the Merak facility’s financial performance over the past few years. The company said that, despite efforts to be competitive, the facility has suffered from low utilization rates.

　　According to Cabot, Asia is becoming one regional market and this dynamic has created the need for facilities to be even more cost-competitive. As a result, the company will use its Cilegon, Indonesia, as well as other Asian and global carbon black production sites to meet customer demand.