News from Notch Consulting, Inc.

August 16, 2017

Tennessee approves grant for Nokian plant

Filed under: Tires — Tags: — Notch @ 2:24 pm

Tennessee officials have approved a $28.42 million state infrastructure grant in support of Finnish tire manufacturer Nokian Tyres’ planned $360 million tire factory.

Nokian and the state announced in May the manufacturer would build its first U.S. tire plant in Dayton, north of Chattanooga. Construction for the plant will begin in early 2018 with the plant being fully operational by 2020.

Sourced article found here.

Supply issues hit North American carbon black industry

Filed under: Carbon Black — Notch @ 6:00 am

The US carbon black market has seen some turmoil over the three weeks due to operational issues at Continental Carbon’s carbon black factory in Ponca City, Oklahoma. Here is Notch Consulting’s understanding of what is happening:

  • The carbon black factory in Ponca City receives feedstock via pipeline from the Phillips 66 refinery also located in Ponca City.
  • The carbon black plant also receives feedstock by tanker truck from various suppliers.
  • The Phillips refinery previously announced a major scheduled turnaround from September to October. However, Phillips initiated the shutdown of the decant operations earlier than expected (late July), and the shutdown now will extend through December 1.
  • Phillips 66 shut off feedstock supply to the carbon black plant during the last week of July.
  • CBO will not be available from the refinery during this period (i.e., through December 1).
  • Continental Carbon declared force majeure for the Ponca plant on August 2.
  • Continental Carbon reports that the Ponca plant will remain operational during this period. The plant is working to bring in replacement feedstock but details are still under development at this time.

This development comes on the heels of Orion’s announcement earlier this month that it plans to mothball one production line at its Orange, TX at the end of 2017. These two developments have raised serious concerns about carbon black supply in the United States over both the short and long term. Notch Consulting estimates that $5.2 billion will be spent in the United States on new tire production capacity from 2016 through the end of 2021, including new tire factories from Continental, Giti, Hankook, Kumho, Nokian, Qingdao Sentury, and Wanli, as well as major expansions from Bridgestone, Continental, Goodyear, Sumitomo, Toyo, and Yokohama. Obviously these expansions will put a strain on existing supply, particularly as no capacity expansions have been announced for the region and three of the five domestic producers of carbon black are in talks with the EPA regarding new emission standards (which could potentially lead to the closure of some capacity).

Notch Consulting this month is publishing the new edition of its Carbon Black World Data Book, which covers global supply and demand in this $13 billion industry. This year’s edition will include a special report on conditions in the North American market given recent events, including near and long-term scenarios for imports and domestic supply. Contact Notch at info @ notchconsulting.com for details or to order.

August 10, 2017

Phillips Carbon Black announces capacity expansion

Filed under: Carbon Black — Notch @ 9:19 pm

Phillips Carbon Black, India’s largest carbon black producer, announced today a plan to invest Rs 300 crore (US$47M) in the current fiscal year to increase carbon black capacity by 80,000 tons at its plants in Mundra and Palej by March 2019. The project will raise PCBL’s total capacity to 560,000 tons. The company reported that it used 98% of its 480,000 tons of currently installed capacity last year. PCBL is also considering a new greenfield carbon black plant of 120,000 tons to be located in Tamil Nadu or Andhra Pradesh. The company already owns a 60-acre plot in Tamil Nadu, which makes it the most likely location, though Andhra Pradesh is also under consideration. Both states are in southeastern India. Previously, PCBL announced plans to install a new production line dedicated to specialty blacks at its plant in Palej. This project is separate from the above announcement.

Bridgestone to invest $304 million for plant expansion in India

Filed under: Tires — Tags: — Notch @ 12:46 pm

Bridgestone India Pvt. Ltd., a group company of Bridgestone Corporation has announced plans to invest $304.3 million USD for expansions of its Pune (Chakan) and Indore (Kheda) plants. The project will be phased in over the next five years.

Production capacity is expected to increase by an estimated 15,000 tires per day, bringing total daily production from both plants to approximately 41,000 tires by 2022.

August 1, 2017

Indian tire company, Balkrishna Industries, announces carbon black plant

Filed under: Carbon Black, Tires — Notch @ 6:30 am

An Indian tire company, Balkrishna Industries Ltd. (Mumbai, India), has announced a new project to build a 60,000 ton/year carbon black plant at its plant in Bhuj, Gujarat, India. No completion date was announced. The budget for the project is Rs 150 crore (US$23 million). Balkrishna produces tires mainly for specialty markets, focusing on off-the-road, earthmover, agricultural, industrial, ATV, and lawn/garden equipment tires. Annual sales total US$850M, according to the company.

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