China Synthetic Rubber to Boost Output of Carbon Black in India

Taipei, June 30, 2011 (CENS)--Driven by the promising Indian tire market, China Synthetic Rubber Corp. will invest US$40 million to boost capacity of carbon black in that nation this year, with the investment to double annual output of carbon black to 205,000 metric tons from the present 65,000 metric tons. With the expansion expected to be completed by 2013, the company will become India's third-largest producer of carbon black with market share rising to 30% from the current 10%.

Amid the global economic recovery, especially in emerging nations as China and India, the company will continue to increase investment in the two nations in the future.

To streamline management and enhance market management, China Synthetic Rubber's CSRC (Singapore) will offer US$20.4 million to acquire 33.79% stake in CCIL, an Indian producer of carbon blacks, with the acquisition to help China Synthetic Rubber better manage the Indian market and further expand into Southeast Asia.

CCIL has a 10% market share with net profit margin reaching 10% in India. Driven by the promising Indian automobile and tire industries, CCIL will boost capacity to expand exports to Southeast Asian markets.

China Synthetic Rubber has annual capacity of 680,000 metric tons of carbon blacks worldwide, being the world's fourth-largest producer in market share.