Cabot Corporation Announces Acquisition of Tokai Carbon (Tianjin) Co., Ltd Carbon Black Plant in China
The growth of electric vehicles has led to rapid development in lithium-ion batteries. Conductive carbon black additives play a key role in battery chemistry to increase the range and cycle life of lithium-ion batteries. The site currently can produce up to 50,000 metric tons of carbon black annually and Cabot plans to invest to upgrade the capabilities to produce battery grades.
“The acquisition of Tokai Carbon (
President and CEO of Tokai Carbon Co., Ltd.,
Cabot will run the plant and intends to continue to supply current customers while conducting technology upgrades. The upgrades to manufacturing and environmental equipment will enable the site to manufacture conductive carbon black for battery materials as well as other carbon black products while meeting environmental standards.
The parties expect to close the transaction in the second fiscal quarter of 2022.
About Tokai Carbon Co., Ltd. (Tokai Carbon)
Founded in 1918 and headquartered in
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release involving the Company that are not statements of historical fact are forward-looking statements and are subject to risks and uncertainties inherent in projecting future conditions, events, and results. Such forward looking statements include statements regarding Cabot’s expectations pertaining to the timing of completion of the acquisition, Tokai Carbon Tianjin’s capacity for growth over the next several years and the expected benefits of the acquisition, including to Cabot’s future financial performance. Such expectations are based upon certain preliminary information, internal estimates and management assumptions, expectations, and plans. For a discussion of the risks and uncertainties that could cause results to differ from those expressed in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.
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