News from Notch Consulting, Inc.

NewsOK, the website of the Oklahoman newspaper, is reporting that American Indians owning land and homes around Continental Carbon’s Ponca City, Oklahoma carbon black plant have settled their lawsuit against the plant’s owners for $10.5 million. The suit alleged that the plant was emitting carbon black dust into the surrounding area. The settlement with Continental Carbon Co., a holding company, and its Taiwanese parent company, China Synthetic Rubber Corp., will benefit the Ponca Tribe and about 1,800 other land owners in the area. Attorneys will receive 40% of the settlement plus more than $1.6 million for expenses.

According to the website, about 10,000 other property owners settled a separate lawsuit against Continental Carbon Co. for $800,000. Their attorneys will get 30 percent of the settlement.

Both of these settlements were approved by a federal judge in Oklahoma City on Tuesday. The settlements are not an admission of liability on the part of the plant owners, who alleged in court papers that a ConocoPhillips oil refinery is responsible for the black dust in the area.

On Friday, July 24, the website of the New Indian Express newspaper reported that the “tyre and tread rubber manufacturing units in the country [India] are heading for a severe crisis, as carbon black, a critical raw material for production, is in short supply.”

The article asserts that recent actions by India’s Commerce Ministry to add anti-dumping duties to carbon black have led to a shortage of carbon black in the Indian market.

The crisis is borne out of a notification issued by the Ministry of Commerce (No 81(RE-2008- )/2004-2009), dated January 16, 2009 and amendment thereon, restricting import of carbon black if its landed cost value is less than Rs 80 per kg, while the current Indian price of the same product is well below the suggested price. In addition to this, the Director General of Anti Dumping and Allied Duties, Ministry of Commerce, by its preliminary findings dated May 25, 2009 has imposed anti-dumping duty on carbon black imported from Australia, China PR, Russia and Thailand, at the rate of an approximate Rs 6,000/tonne.

Contrary to the claims of the article, the Indian carbon black industry has more than enough capacity to meet the country’s domestic demand and in fact is a net exporter of carbon black. Further, the industry is in the midst of a major expansion program, with new plants recently completed, under construction, or planned by Himadri, Phillips Carbon Black, Hi-Tech Carbon, and Continental Carbon India.

According the website This is Bristol, there are plans to turn the former Sevalco carbon black plant in Avonmouth, UK into a recycling complex. Viridor, one of Britain’s biggest waste management companies, wants to use the site for a £180-million complex that would include an incinerator for burning waste to produce electricity. According to the article, details of the plan come just a week after it was revealed that a £40m deal has been struck to build a plant in Avonmouth which will reduce the amount of rubbish sent to landfill by up to 80 per cent.