$10M project increases inkjet capacity to meet demand for high-growth commercial inkjet markets
BOSTON--(BUSINESS WIRE)--Jun. 11, 2012-- Cabot Corp. (NYSE: CBT), the world’s largest manufacturer of aqueous inkjet pigment dispersions, has completed a $10 million capacity expansion project at its Haverhill, Mass., inkjet facility.
A Cabot employee works to produce aqeuous inkjet pigment dispersions at the company's plant in Haverhill, Mass. (Photo: Business Wire)
The project further supports Cabot’s growth in the emerging office segment of inkjet printing, and the commercial inkjet printing market. The new expansion doubles the production capacity of Cabot’s CAB-O-JET® small molecule color and polymer-attached pigment dispersion lines.
Cabot’s inkjet business benefits from an important technology shift in the commercial printing segment in which inkjet technology is increasingly being adopted in order to adapt to changes in volume and demand. Market analysts predict that the inkjet market for commercial print will achieve a compound annual growth rate of more than 35 percent over the next three years.
Inkjet technology is used in a variety of segments, including transactional printing, which includes monthly mailings such as credit card statements, personalized targeted direct mail and book printing. Publishing houses that are seeking to reduce book inventories and decrease print run lengths to respond to the increased use of eReaders and iPads are utilizing inkjet technology to enable “print on demand.” As a result, book printing is now the largest and fastest growing segment using inkjet technology.
Inkjet is also seeing significant growth in the small-office segment. This market has been traditionally dominated by laser printers sold for under $500. However, customers now have a better alternative with the launch of inkjet desktop printers that offer color comparable to laser printing, at significantly less cost and a reduced energy footprint.
“As our dispersions deliver high optical density with the best durability in the market, we recognized a new opportunity to grow our inkjet business to meet our customers’ need for high performance, quality products for the growing commercial market,” said Julie Planchet, general manager, Cabot inkjet colorants. “By growing our color pigment dispersion business, we are able to expand our position as a strategic partner to more original equipment manufacturers. Furthermore, with color inkjet printing making in-roads into sizeable markets for transactional, book, direct mail, graphics, labels, packaging and signage, we see the potential for growth across a variety of printing applications.”
Cabot’s Haverhill expansion project started in summer 2011 and was officially completed at the end of March 2012. The project’s successful completion is due largely to Cabot’s safety performance, teamwork, and collaboration with local and state officials. During the construction of the project, Cabot achieved a major safety milestone by logging over 31,000 contractor hours without any recordable injuries.
“In Haverhill we are making a concerted effort to support economic development in our city and spur long-term growth,” said William Pillsbury, City of Haverhill Economic Development and Planning Director. “We are excited that we could be a part of this expansion project, and we recognize the benefits that Cabot’s site will have on the city. With a 30 percent increase in production staff, the expansion is already proving beneficial for job creation, enhancing economic development and long-term strategic growth for Haverhill.”
About Cabot Corporation
Cabot Corporation is a global specialty chemical and performance materials company headquartered in Boston, Massachusetts, USA. Cabot's major products include carbon black, fumed silica, inkjet colorants, aerogel, elastomer composites, and cesium formate drilling fluids. The company’s website is: http://www.cabot-corp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in the press release regarding Cabot’s business that are not historical facts are forward looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward looking statements, see “Risk Factors” in the Company’s Annual Report on Form 10-K.
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Source: Cabot Corporation
John Shea, 617-342-6254
Erica McLaughlin, 617-342-6090