BOSTON (AP) -- Specialty chemicals maker Cabot Corp. said Wednesday it will spend more than $180 million to expand manufacturing capacity in Asia, South America and Europe to boost production of a compound used in tires.
The Boston company said it will expand at factories in China, Indonesia, Brazil, Argentina and three European locations by the end of 2013. The expansions will increase the company's annual carbon black output by 15 percent or more. Carbon black is used as a reinforcing agent in rubber, and the company said the need for it is increasing.
"Mobility and transportation of goods is growing dramatically in developing countries around the world," CEO Patrick Prevost said in a statement. "As a result, the global demand for tires is expected to increase by 5 to 10 percent annually over the coming 10 years in these developing countries."
Company shares fell 38 cents to $43.76 at the start of trading.