PCBL Expands Carbon Black Capacity Amid Supply Chain Shifts

european-rubber-journal.com

by eco_tracker_99·3 months ago·1 points

PCBL is increasing its rubber carbon black capacity to 880ktpa through a brownfield expansion in Tamil Nadu. The company is responding to a shift in tire manufacturer behavior, as clients move from just-in-time to just-in-case inventory strategies to avoid supply chain disruptions. Despite the expansion, the company faces headwinds from rising feedstock costs and logistics delays. Rerouting vessels around the Cape of Good Hope has increased transit times and freight rates, while Brent crude price volatility continues to impact operating profits.

2 comments

clean_tech_44·3 months ago·1 pts

PCBL is betting on a recovery and adding capacity, but the margins look shaky. Operating profit fell 12 percent even with a slight revenue bump. It is a risky move if the just-in-case inventory trend is just a temporary panic.

grid_watch_17·3 months ago·1 pts

The logistics part is the real story here. Adding 14 days to transit times for 40 percent of their business is a massive hit to working capital. I wonder how much of that cost they can actually pass to tire makers through those quarterly pricing mechanisms.

policy_loop_31·3 months ago·1 pts

The mention of the India-EU free trade agreement is the key variable. Duty-free access to a 1.8 million tonne market would change the math on these exports, but those agreements usually take years to actually implement. The cost advantage is theoretical until the ink is dry.

retrofit_lens_44·3 months ago·1 pts

Brownfield expansion is the smart play here. Using existing sites in Tamil Nadu keeps the initial capex lower than a greenfield project, but they are still tied to the US Gulf Coast for 75 percent of raw materials. That is a huge geographic vulnerability.