Cabot to increase Production Capacity Color Pigment Dispersion and Polymer Product Lines

Cabot Corp. (NYSE: CBT) will invest $10 million to increase production capacity at its inkjet facility in Haverhill, Mass., by the end of 2012, company officials said today.

The expansion, which started earlier this year, will enable Cabot to increase the capacity of its CAB-O-JET(R) color pigment dispersion and polymer product lines by 100 percent.

The expansion will further strengthen Cabot's leadership position in aqueous pigment dispersions, which are used to provide the black, cyan, yellow and magenta colors in many of today's inkjet printers.

Over the past few years inkjet printers have started to penetrate the office market, competing against laser printers by providing full color printing at low cost and having significant environmental benefit due to lower energy usage. In addition, the widespread adoption of eReaders and the resulting lower demand for traditional books has led publishing houses to find alternatives to large print runs, such as "print on demand." Similarly, transactional printing, such as bank statements and bills, is using more color and is being used to provide more personalized marketing content. Digital printing technology, such as inkjet, satisfies this growing need for shorter print runs and personalization that was either cost prohibitive or not feasible with traditional analog printing.

"This expansion will support the rapid growth in inkjet that we see in both the office and commercial printing segments," said Fred von Gottberg, Cabot vice president, New Business Segment. "With an increased demand for color printing, personalized content and short runs, we believe that inkjet printing has become the best, most cost-effective solution."

The CAB-O-JET line of products is manufactured using a proprietary stabilization technique and surface treatment that delivers superior print performance, durability and flexibility for the inkjet ink developer.

The launch of the CAB-O-JET 400 series of inkjet colorants in 2007 marked the debut of Cabot's patented calcium-binding technology, a breakthrough technology that results in sharper, brighter prints on standard papers at high speed.

"We are growing our inkjet business by consistently delivering quality, and creating sophisticated technology solutions that meet our customers' needs and enable them to differentiate themselves in the market," said von Gottberg. "We've demonstrated that CAB-O-JET is a winning product platform, and our expansion of the Haverhill facility will support our customers' growth in both current and emerging applications."

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