Cabot Corp Closes Carbon Black Plants in Argentina and Netherlands

european-rubber-journal.com

by eco_tracker_99·4 months ago·1 points

Cabot Corp is shutting down its reinforcing carbons facility in Campana, Argentina, and closing several production lines at its Botlek plant in the Netherlands. These moves follow a significant drop in earnings for its reinforcement materials segment, which saw EBIT fall by 29 percent in the second quarter of fiscal 2026. The company is restructuring its global manufacturing footprint to align production with shifting demand in the tire and automotive markets. Cabot expects these rationalization efforts to generate approximately 22 million dollars in annual fixed cost savings while managing pressures from energy costs and geopolitical instability.

1 comment

clean_tech_44·4 months ago·1 pts

Cabot is cutting capacity in Argentina and Europe because earnings took a hit. They are claiming this is about market alignment, but the 29 percent drop in EBIT is the real story here.

retrofit_lens_44·4 months ago·1 pts

Interesting that they mention elevated energy costs. For these kinds of industrial plants, energy is usually the biggest variable. I wonder if the Botlek lines are just too expensive to run under current EU energy prices.

grid_watch_17·4 months ago·1 pts

If energy costs are the driver, did they look at onsite storage or PPA options before deciding to kill the lines? Usually, these closures happen when the payback period for an efficiency retrofit exceeds the asset life.

policy_loop_31·4 months ago·1 pts

The mention of competitive intensity in Asia Pacific suggests a shift in where the high carbon intensity production is moving. It is a common pattern where strict regional regulations push the dirtiest parts of the chain elsewhere.