Cabot Corp. is building a new plant to make compounds and concentrates in Indonesia.
The plant in Cilegon will have annual production capacity of almost 45 million pounds of black masterbatch concentrates and conductive compounds, officials with Boston-based Cabot said in a news release.
The new facility will be co-located with the firm's existing carbon black plant. It is expected to be operational by the end of 2022.
Officials said the new capacity will provide reliable local supply for increasing need of specialty compounds and concentrates in Southeast Asia and globally. This demand is driven by economic growth, as well as increases in sustainable infrastructure a rise in the production of electrical devices.
Being co-located with the carbon black plant will enable Cabot to use manufacturing efficiencies and reduce waste, including the use of recovered waste-heat energy, officials said. This will help the firm meet its goal to achieve net zero carbon emissions globally by 2050.
Cabot is a major global supplier of carbon black, as well as specialty compounds and concentrates. The firm posted sales of $3.4 billion in the fiscal year ended Sept. 30, up almost 31 percent vs. its previous fiscal year.