BOSTON (Nov. 23, 2015) — Cabot Corp. is closing its carbon black plant in Merak, Indonesia, with operations set to cease by the end of January 2016, the company said in a Nov. 12 release.
The shutdown will affect about 50 local employees and was driven by the Merak facility's financial performance over the past few years.
“Despite efforts to be competitive, the facility has suffered from low utilization rates,” the firm's release said.
According to Cabot, the move is part of a wider restructuring plan to consolidate the company's manufacturing footprint in Asia-Pacific.
The goal is “to ensure that we are operating as efficiently and effectively as possible to become more competitive in a challenging environment,” said Sean Keohane, president of the Reinforcement Materials segment.
“We will consolidate production in Asia by ceasing production at our Merak facility and using our Cilegon, Indonesia, as well as other Asian and global carbon black production sites to meet the regional demand,” he added.