Asia Carbon Industries has declared that it will start the conversion of its three dry production lines to specialty carbon black production lines. The project will receive funding by cash from operations and will start on October 1, 2012 and get completed in around three months. The total cost is around $4 million.
As a result of high sales prices, the specialty materials that will be produced at the new plants will help in bringing in a considerable amount of revenue. Furthermore, its production process is a lot cleaner. Specialty carbon black has a wide range of uses when compared to conventional products that include its use as a UV stabilizer, pigmenting agent or conductive agent in a range of products such as toners, plastics, printing coating and inks, electrical and battery parts.
The annual production capacity of each of the company’s dry production lines is 12000 t, operating at around 80% capacity and at the present price levels, they generate $27 million revenue per year. On completion of the renovation, production lines will have a 6000 t annual capacity for 18000 t of specialty carbon black every year. The projected revenue from production of specialty carbon black is expected to be around $35 million yearly.
Production on the present three manufacturing lines will be stopped during production line conversion. According to Asia Carbon’s Chairwoman of the Board and CEO, Ms Yao Guoyun, this renovation is another step in the expansion plan of Asia Carbon.