News from Notch Consulting, Inc.

May 14, 2018

CSRC plans to spin off carbon black unit, expand capacity in India

Filed under: Carbon Black — Notch @ 5:00 am

Taipei Times reports that China Synthetic Rubber Corp, the world’s fifth-largest carbon black supplier and the only producer in Taiwan, plans to spin off its carbon black and biotech units, as the 45-year-old company considers transforming into a holding firm.

The planned spin-off, intended to improve the company’s operating efficiency and raise its competitiveness, is scheduled to take effect on Sept. 30, CSRC said in a filing with the Taiwan Stock Exchange on Thursday last week.

CSRC, a major subsidiary of the nation’s largest cement maker, Taiwan Cement Corp (台灣水泥), said it would remain listed on the local bourse after the move and would rename itself International CSRC Investment Holdings Co Ltd (國際中橡投資控股).

The existing shareholders’ interests would not be affected by the restructuring, it added.

However, the plan still needs to be approved by shareholders at an annual meeting on June 26, the filing said.

CSRC also issued a separate filing last week with the Taiwan Stock Exchange that announced a plan to raise capital through the issuance of 180 million new shares in the near term to fund investments in India and the US.

CSRC said it plans to inject US$155 million into Continental Carbon India Ltd, which would be used to expand manufacturing capacity of carbon black at the unit’s plants in India’s Gujarat State.

As for the US investment, CSRC proposed a capital injection of US$52 million to Continental Carbon Co, headquartered in Houston, Texas, to replenish its operating capital, the filing showed.

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