CBT Boosts North American Capacity of Circular Reinforcing Carbons

Cabot Corporation CBT recently announced that it has strengthened its manufacturing capabilities in North America to produce circular reinforcing carbons, leveraging its EVOLVE Sustainable Solutions technology platform. With this expansion, its facility in Ville Platte, LA, now joins Cabot’s existing production sites in Mauá, Brazil, and Valasske Mezirici (Valmez), Czech Republic, as locations with proven ability to produce these sustainable carbon materials.

These circular reinforcing carbons are derived from tire pyrolysis oil, which itself is obtained from end-of-life tires. Cabot uses a mass balance approach under the ISCC PLUS certification system to ensure traceability and sustainability in the supply chain. The company has also increased the number of its ISCC PLUS certified sites globally to 14 facilities, thereby enhancing its ability to supply certified sustainable products.

Cabot Advances Local, Sustainable Tire Solutions

One of the strategic benefits Cabot points out is its “make-in-region, sell-in-region” approach, which helps reduce transportation emissions and improve efficiency in its value chain. By producing circular reinforcing carbons closer to customers, Cabot aims to support supply chain resilience while lowering the carbon footprint associated with shipping materials over long distances.

Cabot highlights that its product serves as a direct substitute for conventional carbon black, enabling tire manufacturers to enhance the share of sustainable materials in their products without compromising on quality or performance. This initiative supports the broader sustainability goals within the tire industry, where many tire makers are targeting 40% sustainable material usage by 2030 and striving toward 100% by 2050.

CBT emphasized that the expansion underscores Cabot’s ongoing commitment to integrating innovation with sustainability. It remains committed to optimizing its operations and global footprint to stay aligned with the evolving environmental and industry standards.

The shares of CBT have fallen 22% year to date compared to its industry’s decline of 18.9%.

CBT’s Zacks Rank & Key Picks

CBT currently carries a Zacks Rank of #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Methanex Corporation MEOH, Carpenter Technology Corporation CRS and Galiano Gold, Inc. GAU. MEOH, CRS and GAU carry a Zacks Rank #2 (Buy), each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

The Zacks Consensus Estimate for MEOH’s current-year earnings is pegged at $3.70 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 83.2%. 

The Zacks Consensus Estimate for CRS’s current fiscal-year earnings is pegged at $9.52 per share, indicating a 27.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.4%. CRS’s shares have gained 47.7% year to date.

The Zacks Consensus Estimate for GAU’s 2025 earnings is pegged at 24 cents per share, indicating a rise of 41.2% from year-ago levels. The company’s earnings beat the consensus estimate in two of the trailing four quarters and missed two, with an average surprise of 17.08%.  

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This article originally published on Zacks Investment Research (zacks.com).

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