Taking advantage of the fast growing market in carbon black, Phelps Dodge (PD-N) will acquire a Brazilian carbon black manufacturing business from Luxembourg-based major Minorco (MNRC-Q).
The Arizona-based copper producer has agreed to pay US$220 million for Copebras, which it has placed under the control of its wholly owned subsidiary, Columbian Chemicals.
Columbian intends to expand its carbon black business through the anticipated rapid growth of the South American market over the next decade.
“Addition of this business allows us to participate in one of the fastest growing markets in the world, and is an important step toward our goal of establishing a presence in regions where we are currently underrepresented,” says Manuel Iraola, president of Phelps Dodge’s manufacturing division, Phelps Dodge Industries (which includes Columbian Chemicals).
Copebras, situated near Sao Paulo, has a capacity of 170,000 tonnes of carbon black per year and annual sales of US$110 million. In 1997, Columbian’s carbon black plants produced 700,000 tonnes and registered sales of US$429.5 million. Carbon black is used in the production of tires, paints and wire coating.
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