Tokai reports carbon black gains, forecasts lower earnings in 2025

Tokyo – Tokai Carbon has reported growth within its carbon black operations despite lower volumes in 2024.

Full year earnings (EBITDA) for the carbon black business were up 9.2% year-on-year at Yen32 billion (€200 million), on 5.6% higher sales of Yen156 billion.

The division’s operating income grew 2% over 2023 to Yen21.7 billion, Tokai announced 13 Feb.

The Japanese group linked the gains to the partial cost pass-throughs and favourable exchange rates.

For 2025, the group expects sales to increase to Yen167 billion but earnings to drop to Yen25 billion on expected investment costs.

Tokai anticipates tire production to continue to grow steadily at an annual rate of 3%, supporting higher sales next year.

However, parallel operation of a new production base in Thailand alongside the existing facility is set to weigh on earnings until the third quarter of 2026, Tokai said.

The new plant in Thailand is scheduled to start operations by mid-2025, according to the Japanese group.

Furthermore, Tokai said it completed “large-scale” investments in environmental facilities at all three of its US plants with a total investment of Yen30 billion.

The group is also planning to invest in R&D for high-function carbon black in the medium term.