CSRC to close one China carbon black plant, divests another

Taipei – International CSRC Investment Holdings, the Taiwanese parent group of Continental Carbon, is scaling back its footprint in China with the closure of one plant and the divestment of another.

On 11 March, the group announced plans to shut down its manufacturing site in Anshan, northeastern China, as part of a global strategic realignment aimed at  enhancing competitiveness.

In recent years, China’s carbon black market has been characterised by overcapacity and intensified competition, CSRC noted.

Between 2019 and 2023, it said, the country’s carbon black production capacity increased, but the average utilisation rate remained at just 58%.

Additionally, the company said, low-cost imported carbon black has flooded the market, further driving down prices and worsening market conditions.

As a result, CSRC's Anshan plant has recorded an average annual loss of Yuan 92 million (€12 million) over the past five years.

The facility’s outdated equipment also requires major upgrades to comply with new environmental and technological standards, the group added.

With long-term competitiveness in mind, CSRC said it opted to shut down the Anshan site and reallocate production capacity globally.

At the same time, CSRC has finalised the previously announced sale of its carbon black facility in Chongqing, southwest China, to Longxing Technology, a local chemicals major. (ERJ report)

Valued at Yuan 87 million, the site has been renamed Chongqing Longxing Technology Co. and will primarily supply to customers in Hebei and Henan provinces.

Beyond China, CSRC said it is adjusting its global production footprint.

The group plans to gradually expand production capacity in North America, where it operates two plants in Sunray, Texas and Ponca City, Oklahoma; as well as in Europe, where it is constructing a facility in Iskenderun, Turkey.

The additional capacity, it explained, will be strategically aligned with market shifts, allowing for a more flexible response to demand.

CSRC also aims to accelerate product transformation, with increased focus on high-value speciality carbon black applications and environmentally friendly alternatives.