Cabot Announces Joint Venture With China Bluestar
Cabot Corporation announced that its wholly-owned subsidiary, Cabot (China) Ltd., has signed a joint venture agreement with Bluestar New Chemical Materials Co.,Ltd., a part of the China National Bluestar Group, to manufacture fumed silica in China. The new company will operate under the name Cabot Bluestar Chemical (Jiangxi) Company Ltd. Cabot will own 90 percent of the venture and Bluestar will own the remaining ten percent. The agreement was signed following a ceremony in China's Great Hall of the People.
Cabot Bluestar Chemical Company will invest approximately US $30 million to build China's first world class, fumed silica manufacturing facility to be located near Nanchang, in Jiangxi province. Construction of the plant is expected to begin in spring 2004 and be completed in late 2005.
Kennett F. Burnes, Cabot Chairman and CEO said, "Our experience in China over the years has been very positive. We're excited about this partnership with Bluestar and the opportunity to provide a long-term, reliable source of high quality material. "
Ren Jianxin, President of China National Bluestar Group said, "This new facility, which will be built in close cooperation between Cabot and Bluestar, will become the first state-of-the-art fumed silica plant in China, and a great help to the growth of the Chinese silicone industry."
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