Over $100m US investment in carbon black

The US-based chemical company Cabot Corporation intends to invest more than 100 million dollars in Romania to build a factory, vice-premier George Copos, the government official who is in charge of the business environment, SMEs and foreign investments, told ZF.

“Cabot wants to make carbon black here, which is used in the automotive industry,” said Copos, who added that the corporation was scouting for a suitable location for the time being. This is why the Cabot representatives met with the chairman of the Prahova County Council yesterday, but they are checking other locations, as well.

“To carry out the investment, the company would need about 50 hectares of land and we found such a plot in Costesti, Arges county, where Cabot can also find work force,” the vice-premier added.

The investment by the Americans should be done in several stages, but officials of the corporation said they were very determined to do it in Romania.

“They told me they wanted to get started as soon as possible,” Copos stated.

Cabot produces carbon black, a material used in the production of tires, industrial products for the automotive industry, inks, plastics and specialty products.

The company operates in 21 countries and has about 4,400 employees. Out of the total employees, 55% work outside North America, where the company is headquartered. Cabot Corporation posted 2.1 billion dollar revenues last year and is listed on the New York Stock Exchange. Vice-premier Copos also stated that there were other foreign investors interested in Romania, which made him reconsider the estimates about foreign investments for this year from 7 billion euros to 8 billion euros. “Foreign investments Romania will attract this year will reach 8 billion euros,” the vice-premier said.

Attaining this value would mean a 54% leap from 2005, when NBR provisional data indicate a foreign investment level of 5.2 billion euros.