Cabot Will Close Carbon Black Plant

Cabot will cease making the rubber reinforcing agent carbon black at a 60,000-ton-per-year plant in Waverly, W.Va. That plant will be closed in March 2008 and will result in the loss of 48 jobs. Over the past 18 months, Cabot explains, a number of tire makers have cut capacity in the U.S., while tire makers in South America and in China and other Asian countries have been ramping up. To account for the closure, the firm will take a $22 million pretax charge against earnings over the next two years. Separately, Cabot has agreed to settle federal class-action lawsuits alleging that it violated antitrust laws by setting U.S. carbon black prices. Although it denies any wrongdoing, Cabot says it agreed to the $10 million settlement to avoid the expenses of protracted litigation.