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Jakarta Post

Cabot set to spend $100m on expansion

  • Linda Yulisman

    The Jakarta Post

Jakarta   /   Wed, June 20 2012   /  11:24 am

PT Cabot Indonesia, a subsidiary of the world’s largest carbon black manufacturer Cabot Corporation, plans to invest US$100 million in Indonesia this year to expand its production capacity in order to meet surging domestic demand.

The upgrade of its plant in Krakatau Industrial Estate Cilegon, Banten, would allow the firm to increase its production capacity by 140,000 tons to 290,000 tons, director Gerry Howan said on Tuesday in Jakarta.

At present, Cabot operates two plants — one in Cilegon and another in Sumuranja, Merak, Banten.

“Our current installed capacity is only 150,000 tons, while existing demand is 230,000 tons. For this reason, we want to expand,” he told reporters after meeting Industry Minister MS Hidayat at the ministry.

The firm would allocate its entire output for the domestic market, which would see demand rising to 300,000 tons in ...