Longxing acquiring CSRC carbon black plant in southwestern China

Hebei, China – Chinese carbon black and chemicals supplier Longxing Chemical is acquiring China Rubber (Chongqing) Carbon Black from China Synthetic Rubber Corp (CSRC), the Taiwan-based parent of Continental Carbon Co. (CCC).

In a stock exchange announcement 21 Nov, the manufacturer said it had signed a purchase framework agreement with CSRC Singapore for the deal, which is intended to expand production footprint in southwestern China.

Longxing said its current production bases in Xingtai City, Hebei province and Jiaozuo City, Henan province, and are “continuously in full-load production.”

The capacity utilisation rate and production and sales rate have also been at a high level for a long time, the statement added.

However, the company noted that its sales in southwestern China were relatively small, due to long distances from production plants.

According to Longxing, Chongqing is one of China's major car industry bases, with many large tire companies.

The acquisition, it said, will help expand market reach and reduce transportation costs.