News from Notch Consulting, Inc.

August 21, 2019

Cabot increases feedstock surcharge for rubber blacks in North America

Filed under: Carbon Black — Notch @ 10:35 pm

On August 19, Cabot Corp. announced that it will apply a Feedstock Surcharge of $0.03 per pound for all carbon black products sold by the Reinforcement Materials segment in North America, effective October 1, 2019 and to the extent allowed under customer contracts.  This replaces the previously announced feedstock surcharge of $.01 per pound that has been in effect since April 1, 2019.

According to a company press release announcing the increase, the carbon black feedstock market in North America is seeing increasing effects from changes in the types of crude oil being refined and an increase in demand for low sulfur fuel oil associated with the upcoming 2020 International Maritime Organization (IMO 2020) regulation, also known as MARPOL. As a result, Cabot is seeing changes to the type and availability of material with the specific quality required to produce carbon black.

 

August 14, 2019

BKT suspends plans for US tire plant

Filed under: Tires — Notch @ 3:38 pm

Tire Business reports that Balkrishna Industries Ltd. (BKT), an Indian producer of OTR tires, is suspending its plans for a U.S. tire factory, citing “business uncertainties” related to difficult macroeconomics and the “volatile” climate conditions. BKT announced plans to invest $100 million in a new tire plant in the US last October.

Nexen to inaugurate new Czech tire plant

Filed under: Tires — Notch @ 3:34 pm

Korea’s Nexen Tire will hold an opening ceremony for its new $1 billion tire plant in the Czech Republic on August 28. The plant, located in the Triangle Strategic Industrial Zone in Zatec, began trial production in April and recently began supplying customers. The 7 million-sq.-ft. factory had 3 million units of capacity at start-up and is expected to increase to 11 million by 2022. The Czech deputy minister of industry and trade, Petr Očko, is expected to join Nexen CEO Travis Kang and Chairman Byung-Joong Kang at the plant’s ceremonial opening on Aug. 28, Nexen said.

August 8, 2019

Michelin expands Tweel offerings for skid steers

Filed under: Tires — Notch @ 11:54 am

Tire Business reports that Michelin North America has expanded the range of its Tweel non-pneumatic tire/wheel hybrid with a pair of products designed for skid-steers with maximum loads of up to 4,400 pounds. The Tweel SSL AT2 and HST2 are designed for all-terrain and hard-surface applications, respectively. Michelin launched the tires in size 12N16.5, which has applications in construction, paving, agriculture, recycling, landscaping, refuse and contracting.

August 6, 2019

Cabot adding feedstock surcharge to specialty black sales in North America

Filed under: Carbon Black — Notch @ 12:06 pm

Today, Cabot Corporation announced that it will implement a feedstock surcharge for all specialty carbon black products manufactured in North America. The decision is driven by new low sulfur fuel regulations. Cabot will institute a surcharge of $0.07/pound for all orders shipped on or after September 16, 2019, or as customer contracts allow, for all specialty carbon black products produced by its Performance Chemicals segment in North America.

Cabot’s specialty carbon blacks are produced from high quality, low sulfur feedstocks that are sourced from a similar pool as marine fuels. This market is undergoing significant change due to the 2020 International Maritime Organization (IMO 2020) fuel sulfur regulation, also known as MARPOL. Though the IMO 2020 regulation is set to be implemented in January 2020, changes in certain supply chains are already evident.

In a press release announcing the decision, Jay Doubman, Cabot’s senior vice president and president, Performance Additives said, “We recognize this new rule will bring long-term benefits to the environment and human health; it also presents disruption in the industry and comes with upfront costs to adapt. This change in industry structure will take time to stabilize, and we are committed to providing transparency and predictability to our customers.”

Cabot expects that once new lower sulfur indices are stabilized and fully adopted by the supply chain, it will transition to pricing and indices that appropriately represent the input costs of carbon black.

August 1, 2019

Birla Carbon raising specialty black prices in North America

Filed under: Carbon Black — Notch @ 12:01 pm

On August 1, Birla Carbon announced it will raise prices for all specialty carbon blacks in North America by 9% effective September 1, 2019. All shipments made on or after this date are subject to the price increase. According to Birla, the increase is necessary due to extreme cost increases in carbon black feedstock. In addition, Birla Carbon will implement a revised schedule of fees for non-standard package services, also effective September 1, 2019. 

Here is the press release. 

July 31, 2019

Toyo picks Serbia as site for new tire plant

Filed under: Tires — Notch @ 9:27 pm

From R&P News comes the news that Toyo Tire will build a $450 million passenger and light truck tire plant in Europe. Toyo has selected a 150-acre site about 35 miles northwest of Belgrade for the factory, which will be rated at 5 million units a year at full capacity. Toyo plans to break ground in May 2020 at the site in Indija, Serbia, with production slated to start by January 2022. The plant is expected to hit full capacity by summer 2023 with 500 employees, Toyo said. The plant will be Toyo’s eighth tire factory worldwide and make Toyo the 15th global tire company with production capacity in Europe.

2020 Corvette will feature Michelin all-season run-flats

Filed under: Tires — Notch @ 7:55 pm

Tire Business reports that the new 2020 Corvette will be equipped with Michelin’s Pilot Sport ALS run-flats, which Michelin said were designed in concert with Chevrolet engineers in response to customer feedback.The fitments are 245/35ZR19 front and 305/30ZR20 rear. The higher-powered Z51 version gets Pilot Sport 4S run-flats.

PCBL opens R&D center

Filed under: Carbon Black — Notch @ 7:49 pm

Phillips Carbon Black has completed a state-of-the-art R&D center at Palej, Gujarat. Spread over 27,000 square feet, the Sushila Goenka Research and Development Centre entailed an initial investment of Rs 20 crore (US$3 million) and currently employs 30 researchers. It will facilitate development of new carbon black products for tire, MRG, and specialty markets, including engineering plastics, fibers, food contact plastics, wire & cables, ink, paints, batteries and other applications.

Michelin considering future of German tire plant

Filed under: Tires — Notch @ 7:38 pm

ERJ reports that Michelin is considering the future of its car tire production plant in Bamberg as demand continues to fall for smaller-rim tire sizes.

The plant, which specializes in the production of smaller-sized passenger car tires, is facing “substantial difficulties” as competition from Chinese manufacturers increases and European drivers gravitate toward vehicles with larger tires, according to Maira Tuerk, site and change communication manager at Michelin Reifenwerke A.G.

“The range of low-budget products has developed rapidly, (and) since 2010, the market share of the 16-inch premium segment has dropped from 60 percent to 40 percent,” Tuerk said.

The French tire maker has entered into negotiations with the works council of the plant and unions to examine options for the future of the site.

The factory employs around 850 and manufactures 8 million tires per year.

Older Posts »

Blog at WordPress.com.