News from Notch Consulting, Inc.

June 28, 2013

Cancarb unaffected by recent Alberta flooding

Filed under: Carbon Black — Notch @ 9:21 am

Cancarb, the Alberta-based producer of thermal black, reassured customers yesterday that its operations were not affected by recent flooding in southern Alberta due to last week’s heavy mountain rains and their downstream effects. “We continue to operate our carbon black and power production normally and all carbon black shipments are being made as scheduled,” said Dave Petrie, Cancarb’s President and COO, in a press release.

Here is the press release.

June 17, 2013

Cabot to acquire Mexican carbon black producer NHUMO

Filed under: Carbon Black — Notch @ 12:43 pm

Cabot Corporation today announced that it has entered into an agreement with Grupo Kuo S.A.B. de C.V. (KUOB.MX) to purchase the remaining 60 percent equity of its Mexican carbon black manufacturing joint venture, NHUMO, S.A.de C.V, for $105 million. NHUMO is the leading carbon black producer in Mexico, and the acquisition will strengthen Cabot’s global carbon black business. This strategic asset in Mexico will also serve to meet the growing demand for carbon black throughout North America. Cabot has owned approximately 40 percent of the joint venture since 1990.

With 18 plants globally, and capacity in excess of two million tons, Cabot is the world’s leading producer and marketer of carbon black. NHUMO has an annual capacity of 140,000 metric tons and is located in Altamira, Mexico. In fiscal 2012, the joint venture generated adjusted EBITDA of $41 million. The acquisition is expected to close by the fall of 2013, pending regulatory approvals.

Dave Miller, President of the Reinforcement Materials segment, said of the deal, “Auto and tire manufacturers have been increasing capacity in the U.S. and Mexico which is driving demand for our high performance rubber black products. Through this acquisition, we will be well positioned to support the growing demands of our North American customers.”

June 14, 2013

Cooper acquisition moves Apollo into top ten

Filed under: Tires — Notch @ 2:46 pm

The big news this week of course was Apollo Tyres’ acquisition of Cooper Tire & Rubber (Findlay, Ohio) for $2.5 billion in cash. The deal combines the world’s 11th-largest tire company (Cooper) with the 16th largest company (Apollo) to create a company that should rank as the world’s seventh-largest producer, with annual revenues of $6.6 billion based on 2012 results. The acquisition leaves Goodyear as the only US-headquartered producer of passenger and truck tires not owned by a foreign-based company.

Tyrepress.com has some good questions in the wake of the deal.

LANXESS raising prices for rubber chemicals

Filed under: Rubber Chemicals — Notch @ 2:31 pm

On Friday, LANXESS announced a price increase for rubber chemicals effective July 1, 2013. The increases are required to offset higher production costs.

The price increases will impact the Vulkanox (antidegradant) and Vulkacit (accelerator) product groups, and will range between 0.05 Euro/kg and 0.20 Euro/kg (0.10 US$ and 0.30 US$) depending on the product and region.

Michelin closing two tire plants in Colombia

Filed under: Carbon Black, insoluble sulfur, Rubber Chemicals, Tires — Notch @ 2:25 pm

Michelin announced this week that it was shutting down its Colombian subsidiary Icollantas. The decision will result in the closure of two plants: the Chusaca plant produces truck tires, while the plant in Cali produces passenger car tires. The decision will affect about 460 workers. The shut-downs are expected to be completed over summer 2013.

Michelin said in a press release:

In response to more than a decade of substantial annual losses in Colombia, which repeated investments have failed to stem, Michelin has decided to discontinue the manufacturing operations of its local subsidiary Icollantas. Due to its insufficient size and other local economic factors, the unit has never managed to be competitive.

The decision leaves Colombian with just one tire plant: Goodyear’s plant in Cali that produces passenger car, truck, ag, and OTR tires.

Blog at WordPress.com.