BOSTON (Yosefardi) – Cabot Corporation will close its carbon black manufacturing facility in Merak, Indonesia, expected at end of January 2016.
The decision, which will affect approximately 50 local employees, was driven by the Merak facility’s financial performance over the past few years. Despite efforts to be competitive, the facility has suffered from low utilization rates.
Asia is quickly becoming one regional market. Cabot will consolidate production in Asia by ceasing production at Merak facility and using Cilegon, Indonesia as well as other Asian and global carbon black production sites to meet the regional demand.
Indonesia remains a strategic country for Cabot’s carbon black business. Its tire manufacturing industry supplies growing local and global demand.