News from Notch Consulting, Inc.

May 15, 2011

BRISA Announces $285 Million Investment

Filed under: General, Tires — Notch @ 11:02 pm

From European Rubber Journal comes word that Turkish tire maker BRISA has announced investments of $285 million over four years. The investments will largely be spent on maintenance and upgrades at the company’s factory in Izmit, Turkey.

Conti Expanding Mount Vernon, Building New Plant in Russia

Filed under: Carbon Black, General, Rubber Chemicals, Tire Cord, Tires — Notch @ 10:33 pm

On Thursday, May 12, Continental Tire the Americas L.L.C. announced plans to invest $224 million to expand its tire plant in Mount Vernon, Illinois, a project that will add 444 new full-time jobs at the plant. The project, which brings Conti’s total investment in the plant since 2006 to $486 million, will result in a significant increase in tire-producing capacity of nearly 4 million additional passenger and light truck tires annually. About $171 million of the planned investment will be used for new machinery and equipment, while the remaining $53 million will be directed at infrastructure upgrades.

Here is the press release.

According to Rubber & Plastics News (subscription required), in addition to expansion of passenger and light truck tire capacity, Conti’s commercial vehicle tire division will increase capacity at Mount Vernon by 15% by December 2012, bringing annual capacity to 3.15 million tires per year. The first 5% increase has already been achieved, according to Conti.

In addition to the the Illinois expansion, European Rubber Journal reports that Continental also plans to build a new car tyre plant in Russia. The company reportedly will choose a site by the end of June for a plant expected to be operational by the end of 2013. The plant would have capacity for 4 million units annually and represents an investment of around euro 200 million over the four-year period.

Cancarb: Fifth Thermal Black Unit Already Online

Filed under: Carbon Black — Notch @ 8:36 pm

Here is some additional information about Cancarb’s maintenance program, which this blog covered late last week.

Canada-based Cancarb, which is the world’s largest producer of N990 thermal black, recently completed a maintenance program to keep up with strong demand. The company has five production units at its plant in Alberta, Canada with a total of 45,000 tonnes of capacity. Under the program, Cancarb restarted the plant’s fifth unit about two weeks ago. The unit was idled in 2008. This additional capacity allowed Cancarb to maintain shipments while doing a phased shut-down of two other units for maintenance turnarounds. The second of these unit turnarounds was completed on Friday, May 13, and the company expects all five units to be operating at maximum rates by this week.

Continental Carbon to Provide Technology for SABIC/ExxonMobil Carbon Black Joint Venture

Filed under: Carbon Black — Notch @ 7:06 pm

Al-Jubail Petrochemical (KEMYA), a 50/50 joint venture between Saudi Basic Industries (SABIC) and ExxonMobil Corporation, has signed a long-term technology licensing agreement with Houston-based Continental Carbon Company. Under the agreement, Continental Carbon, which is a subsidiary of Taiwan-based CSRC, will provide technology related to the construction and operation of a new greenfield carbon black plant at KEMYA’s petrochemical complex at Al-Jubail, Saudi Arabia.

In addition to the technology agreement, KEMYA and Concarb have also signed a long-term product off-take agreement in which Concarb will market part of the production of the new carbon black plant to the local and international tire industry. The final decision to implement the carbon black project requires the approval of KEMYA’s Board of Directors.

The project will also include a synthetic rubber plant, with a total capacity of 400,000 tonnes per year to serve emerging local and international markets in Asia and the Middle East. Goodyear Tire & Rubber will provide technology for the production of SBR and polybutadiene rubber. The project also includes the establishment of a vocational training center and product application development and support center, aligned with Saudi Arabia’s National Industrial Clusters Development Program to grow and diversify the manufacturing sector in Saudi Arabia.

KEMYA also awarded FEED contracts to Jacobs Engineering Inc. and Mitsui Engineering & Shipbuilding for process units and to Fluor Transworld Services Inc. for associated support facilities.

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