Bridgestone Completes Sale of Altamira Plant to Cabot Corp.

Cabot Corporation, a global specialty chemicals company based in Boston, has completed the acquisition of Mexico Carbon Manufacturing S.A. de C.V. (MXCB), a reinforcing carbon plant located in Altamira, Tamaulipas, which belonged to Bridgestone Corporation.

Also known as carbon black, reinforcing carbon is a fine, nearly pure powder obtained by the incomplete combustion of hydrocarbons, which is primarily used as a reinforcing agent in tires, plastics, and coatings to improve strength and durability.

The facility in question began operations in 2005 and is located near another reinforcing carbon plant that Cabot has operated since 1990. Under the agreement, valued at US$70 million debt-free and cash, Cabot will maintain long-term supply of products to Bridgestone from MXCB.

For Bridgestone, this is the second plant of this type to be sold in less than a year, after selling another factory located in Thailand to the Japanese group Tokai Carbon a few months ago.

With these two divestitures, Bridgestone is almost completely exiting the carbon black production business, retaining only the capacity to cover its local market in Japan through Asahi Carbon.

The company will continue the internal development and production of strategic carbon black in areas directly related to its core competency—materials technologies—where knowledge and proprietary technologies are essential. These areas include premium and motorsports tires.

For Cabot, acquiring MXCB not only improves production capacity and operational flexibility, but also offers the ability to manufacture a broader range of products to better meet the diverse needs of its customers and capitalize on future growth opportunities.