Simultaneous implementation of the commodity surcharge
BOSTON – June 16, 2022 – Cabot Corporation (NYSE: CBT) will increase prices on all carbon black products sold by its Reinforcement Materials segment in North America, effective on all shipments beginning August 1, 2022, or if the customer contracts allow it. Price increases will range from $200/tonne to $400/tonne, depending on product and type of packaging.
These price increases are necessary to meet significantly higher costs to provide a reliable supply of carbon black amid growing demand from increased production of tires and industrial rubber products in the region. Cabot makes significant investments in its manufacturing network to maintain and improve equipment reliability to meet high customer demand, even during high plant utilization. At the same time, Cabot invests in projects to meet requirements related to the U.S. Environmental Protection Agency’s (EPA) National Enforcement Initiative to Control Air Emissions from Carbon Black Manufacturing Facilities. carbon. The cost and complexity of Cabot’s manufacturing operations increase dramatically as these large, highly engineered systems are built and commissioned.
Cabot will also increase the raw material surcharge applied to all carbon black products sold by its reinforcement materials segment in North America, effective on all shipments on or after August 1, 2022, or to the extent customer contracts allow it. This adjustment is necessary to reflect ongoing changes in the North American refining industry due to regulatory changes, residual impacts from the COVID-19 crisis and changes in crude oil inputs to refineries.
Additionally, due to the extraordinary rise in oil prices and increased borrowing costs, extended payment terms to North American Reinforcement customers will be limited to a maximum of thirty days, commencing on all shipments from August 1, 2022, or according to customer contracts. .
Together, these actions will enable Cabot to continue to provide its customers with industry-leading levels of quality, durability and security of supply.
ABOUT THE CABOT COMPANY
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company, headquartered in Boston, Massachusetts. The company is a leading supplier of rubber and specialty carbons, engineered elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed silica and airgel. For more information about Cabot, please visit the company’s website at cabotcorp.com.
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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Statements in this press release about the company that are not statements of historical fact are forward-looking statements and are subject to risks and uncertainties. inherent in projecting future conditions, events and results . For a discussion of risks and uncertainties that could cause results to differ materially from those expressed in the forward-looking statements, see “Risk Factors” in the Company’s Annual Report on Form 10-K.