Tokai Carbon is Planning to Build a New Carbon Black Manufacturing Unit in Thailand

Phuket, Thailand: A well-known Carbon Black Manufacturing Company, Thai Tokai Carbon Product Co., a subsidiary of Tokai Carbon based in Tokyo, has declared its plans to start building a new manufacturing unit in Thailand. The manufacturers would probably shift to the new location, Rayong Site, until April 2025. This new plant with better efficiency will improve the supply flow in the domestic market. Carbon Black prices are rising in Thailand due to supply chain disruptions. Thailand mainly depends on China for its Carbon Black imports; however, both the Chinese and Thai ports are congested along with cargo berth delays, which has been hampering the supply of Carbon Black to Thailand.

Tokai mentioned that the manufacturing of this new plant worth €270 Million is most likely to start in July 2023 and is expected to be completed by April 2025. This new unit would be located at LK Rubber Industrial city hub. After completion of the construction, the manufacturers would shift to the new location leaving behind the 180 KTPA Sriracha plant. This new Tokai plant would also have the same production capacity, 180 KTPA, which would be expanded over 200,000 Square Metres.

In another statement, Tokai said that the demand for Carbon Black has severely increased in the domestic market in the last few years owing to the growth of the automotive industry. Tokai planned to relocate its manufacturing unit to have a more sustainable platform for Carbon Black supply in the country. With this new unit, Tokai would operate with cutting-edge technology, enhancing the company's productivity while minimizing the environmental impact.

As per ChemAnalyst anticipations, "This new manufacturing plant in Thailand would improve the market outlook of Carbon Black in the domestic market with increased operation rates and supply flows, leading to a sufficient level of inventories."