Under the agreement, Cabot owns a 60% equity interest in the new joint venture.
Additionally, Cabot and Risun will invest approximately $100m to construct a carbon black manufacturing facility in Xingtai City, China.
Carbon black is an intensely black performance material, used as a reinforcing agent in rubber as well as a pigmenting, UV stabilizing and conductive additive in a variety of other specialty products.
Once commissioned in early 2013, the Xingtai facility is expected to produce approximately 130,000 metric tons of carbon black annually with the potential for expansion to 300,000 metric tons.
The new plant will employ advanced emissions control technology and energy recapture.
Cabot Corp, headquartered in US, is a specialty chemical and performance materials company.
