Chemical and materials specialist Cabot Corporation has announced that it has entered a definitive agreement to acquire Tokai Carbon (Tianjin) for US$9m from Tokai Carbon Group subject to closing adjustments.
Commissioned in 2006, the carbon black manufacturing facility is located close to Cabot’s current carbon black and specialty compounds site in Tianjin, China. Cabot anticipates that the acquisition will support the growth of its battery materials product line while continuing to serve current carbon black customers.
At present, the site can produce up to 50,000 metric tons of carbon black each year, with the company planning to invest and upgrade the capabilities at the site to produce battery grades. Conductive carbon black is used in battery chemistry to increase lithium-ion battery range and cycle life.
“The acquisition of Tokai Carbon (Tianjin) is a natural extension for us as it aligns with our strategy to strengthen our global leadership positions while pursuing advantaged growth opportunities in high-growth, high-performance markets such as battery materials,” commented Sean Keohane, president and chief executive officer, Cabot.
“With this acquisition, we will be better positioned to deliver solutions to meet the rapidly increasing demands for lithium-ion batteries and will do so by operating responsibly and investing in advanced environmental controls to reduce our impact.”
“We are very pleased to transfer the business to Cabot and wish the employees great success with the new owner,” said Hajime Nagasaka, president and CEO, Tokai Carbon.
Cabot will run the plant and intends to continue to supply current customers while technology upgrades are carried out. The upgrades will enable the facility to manufacture conductive carbon and other carbon black products while adhering to environmental regulations.
The transaction is expected to close in the second fiscal quarter of 2022.