Cabot Altamira carbon black plant hit by drought conditions

Companies located in Mexico's Tamaulipas state have been forced to curb operations due to severe drought affecting the region. The city of Altamira has limited water supplies to more than 70 companies operating in the city. This group includes Cabot Corporation, which operates a carbon black plant in Altamira.

According to Bloomberg:

Chemicals company Cabot Corp. has curtailed work at its facility in Altamira, Mexico, due to the water shortage, spokesperson Emily Moran said Tuesday. The plant is “currently unable to operate all production units and is running limited production, along with warehouse, packing, and shipping operations,” Moran said in an email. Water supply to the facility has deteriorated in “quantity and quality” in recent weeks, Moran said. 

Cabot reportedly declared a force majeure event in response to the water shortages and is evaluating options to restore operations as well as import options from other Cabot facilities.

Mexico has been hit by sweltering temperatures and drought conditions, which are expected to persist through the coming weeks at least. As of mid-May, the metropolitan regions of Tampico, Madero, and Altamira were at imminent risk of running out of water.

Previously in May, water supply was reduced by 50% to some 74 companies operating in the industrial corridor. These cuts were followed by additional reductions, to just 20 lts/sec from 600 lts/sec prior to the cuts.