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PCBL Signs Agreement for Carbon Black Plant in Vietnam

According to several Vietnamese sources, Phillip Carbon Black signed an agreement on May 9 with three Vietnamese companies to build Vietnam’s first carbon black plant. The three Vietnamese partners in the venture are the Southern Industrial Rubber Joint Stock Company, the Da Nang Rubber Joint Stock Company, and the Golden Star Rubber Company, all of which are subsidiaries of Vinachem (the Vietnam National Chemical Corporation.

According to a short article on VietnamNet,

The plant will be built in southern Ba Ria-Vung Tau province at the cost of US$65 million, of which 22 percent will be contributed by the three domestic companies. The plant is expected to produce around 110,000 tonnes annually with half the output for export.

According to an article on, exports will be concentrated in Japan and Korea. Start up is scheduled for 2009.

Both articles quote the same figures for the amount of carbon black that Vietnam imports every year: putting the total at about 50,000 tonnes valued at $60 million ($1,200 per tonne), with the main importers listed as India, Korea and the US.

According to reported trade statistics, Vietnam imported 19,851 tonnes of carbon black valued at $19 million in 2005 (the latest year for which import data are available). If one looks at export data (i.e., the amount of carbon black that trading partners reportedly exported to Vietnam), in 2006, Vietnam imported about 26,950 tonnes of carbon black from 16 countries, with the leading suppliers being China (7,396 tonnes), Korea (7,132 tonnes), India (4,654 tonnes), Thailand (3,516 tonnes), Malaysia (1,759 tonnes), Indonesia (1,427 tonnes), and Iran (550 tonnes).

According to Tire Industry Investment 2008, Yokohama Rubber opened a new tire plant in Ho Chi Minh City in 2007, while Kumho Tires inaugurated a new tire plant in Ho Chi Minh City in March 2008. These new plants are expanding the domestic market for carbon black in Vietnam as they ramp up to full capacity.

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