Cabot Extends Dow Corning Relationship with Capacity Expansion in Europe
Completed Expansion Increases Fumed Silica Production Capacity by 25 Percent in Barry, Wales
BOSTON--(BUSINESS WIRE)-- Cabot Corporation (NYS: CBT) completed an expansion project at its fumed silica facility in Barry, Wales. Production capacity at the site has been increased by 25 percent. The expansion is part of a three-year plan started in 2011 to increase Cabot's global fumed metal oxide capacity by 35 to 40 percent.
This expansion project is an extension of Cabot's long-term relationship with Dow Corning. Furthermore, the increased production capacity supports Cabot's growth in the rising global silicones market. This market is poised to grow at 6 to 9 percent per year over the coming decade. Through the expansion project, Cabot can now use a wider range of silane raw materials to make a broader portfolio of products to meet silicones and other market needs.
Cabot and Dow Corning have worked closely together in Barry since 1991, when Cabot built its fumed silica facility adjacent to Dow Corning's silicone monomer plant. During this time, Cabot and Dow Corning have forged a strong relationship in Barry. As part of a highly interdependent and collaborative "fence-line" relationship, Dow Corning provides Cabot with silanes that are converted to fumed silica for Dow Corning's compounded silicones applications, as well as for other customers and applications including electronics, adhesives and composites.
"The expansion of Barry marks another milestone in our long-term relationship with Dow Corning and demonstrates our commitment to support their growth," said Sean Keohane, Cabot senior vice president, Performance Materials. "This project will deliver strategic value for Cabot and Dow Corning and represents a natural extension of our long and successful relationship."
"After building a strong relationship together for over 30 years, this expansion will open up a broader scope of opportunities for us," said James Whitlock, Dow Corning senior vice president and general manager, Core Business. "Our shared experience to date makes this capacity expansion a valuable project for us both and we look forward to working together to meet the needs of the market."
Fumed silica is an ultra-fine, high-purity particle used as a reinforcing, thickening, abrasive, thixotropic, suspending, or anti-caking agent. The material is highly versatile and used in a wide-range of end-market applications for the automotive, construction, microelectronics and consumer products industries. Fumed silica helps improve the performance of adhesives, sealants, cosmetics, inks, toners, silicone rubber, coatings, polishing slurries, and pharmaceuticals.
Cabot currently has six fumed silica manufacturing facilities globally, including two in the United States (Tuscola, Ill., and Midland, Mich.), two in Europe (Barry, Wales and Rheinfelden, Germany), and two in Asia (Jiangxi Province, China and Mettur, India).
ABOUT CABOT CORPORATION
Cabot Corporation (NYS: CBT) is a global specialty chemicals and performance materials company, headquartered in Boston, Massachusetts. The company is a leading provider of rubber and specialty carbons, activated carbon, inkjet colorants, cesium formate drilling fluids, fumed silica, aerogel, and elastomer composites. For more information on Cabot, please visit the company's website at: http://www.cabotcorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in the press release regarding Cabot's business that are not historical facts are forward looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.
Vanessa Craigie, 617-342-6015
Erica McLaughlin, 617-342-6090
KEYWORDS: United Kingdom United States Europe North America Massachusetts
The article Cabot Extends Dow Corning Relationship with Capacity Expansion in Europe originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.