The decision, which will affect approximately 90 carbon black employees, was because of the facility’s manufacturing inefficiencies and raw materials costs. Cabot remains committed to engaging with customers currently served from the Port Dickson plant to determine how best to meet their needs during and after the shutdown of Malaysian production.
“One of Cabot’s competitive strengths is its global manufacturing footprint, including extensive capacity throughout the Asia Pacific region,” said Jeff Zhu, president, Cabot Asia-Pacific region. “We will leverage our global manufacturing reach to continue to offer quality products and technical services to our customers in Malaysia as we do throughout Asia Pacific.”
“We wish to recognize our colleagues in Port Dickson, who have worked so hard over the years to take care of our customers,” said Patrick Prevost, president and CEO, Cabot Corporation. “We have high regard for them and greatly appreciate their contributions to the company.”
The closure of the plant is expected to result in one-time cash and non-cash charges to the joint venture of approximately $13 million and $15 million, respectively. Annual savings for the joint venture are estimated to be approximately $7 million. Cabot owns 51 percent of the CMSB joint venture.