8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): November 11, 2015

Cabot Corporation
__________________________________________
(Exact name of registrant as specified in its charter)

Delaware	1-5667	04-2271897
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
Two Seaport Lane, Suite 1300, Boston, Massachusetts		02210-2019
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 617-345-0100

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.05 Costs Associated with Exit or Disposal Activities.

On November 11, 2015, Cabot Corporation committed to a plan to close it carbon black manufacturing facility in Merak, Indonesia. The decision to close this plant and to consolidate production in Asia using the Company’s Cilegon, Indonesia and other Asian and global carbon black production sites to meet regional demand was driven by the financial performance at the Merak facility in the past several years. It is anticipated that manufacturing operations will cease by the end of January 2016.

The Company expects this plant closing will result in a pre-tax charge to earnings of approximately $33 million, of which approximately $25 million is for asset write-offs, $2 million is for severance and employee benefits for approximately 50 employees whose employment will be terminated, and $6 million is for site remediation and other miscellaneous costs. These pre-tax charges are expected to be recorded during fiscal 2016. Net cash outlays related to these actions are expected to be approximately $8 million, substantially all of which is expected to be paid during fiscal 2016.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Cabot Corporation Press Release dated November 11, 2015.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Cabot Corporation
November 11, 2015	By:	James P. Kelly
		Name: James P. Kelly
		Title: Vice President and Controller

Exhibit Index

Exhibit No.	Description
99.1	Cabot Corporation Press Release dated November 11, 2015

EX-99.1

Exhibit 99.1

Investor Contact:	Erica McLaughlin (617) 342-6090
Media Contact:	Vanessa Craigie (617) 342-6015

Cabot Announces Restructuring of Indonesian Carbon Black Manufacturing

BOSTON (November 11) — Cabot Corporation (NYSE: CBT) announced that its carbon black manufacturing facility in Merak, Indonesia will close. It is anticipated that manufacturing operations will cease by the end of January 2016.

“To be successful over the long term, we must continue to focus on improving profitability through cost savings and increased operational efficiency while also producing the highest quality products that meet our customers’ needs,” said Sean Keohane, president, Reinforcement Materials Segment. “The decision to consolidate manufacturing across Asia Pacific is a critical step in our plan to ensure that we are operating as efficiently and effectively as possible to become more competitive in a challenging environment, and to accelerate future growth.”

The decision, which will affect approximately 50 local employees, was driven by the Merak facility’s financial performance over the past few years. Despite efforts to be competitive, the facility has suffered from low utilization rates. Asia is quickly becoming one regional market and this dynamic has created the need for our facilities to be even more cost competitive. As such, we will consolidate production in Asia by ceasing production at our Merak facility and using our Cilegon, Indonesia as well as other Asian and global carbon black production sites to meet the regional demand.

Indonesia remains a strategic country for Cabot’s carbon black business. Its tire manufacturing industry supplies growing local and global demand. Cabot is committed to engaging with customers currently served from the Merak plant to determine how best to meet their needs during and after the shutdown of production. Cabot will leverage its global manufacturing reach to continue to offer quality products and technical services to its customers in Indonesia as well as throughout Asia Pacific.  

“We wish to recognize our colleagues in Merak, who have worked diligently over the years to take care of our customers and keep the facility operating as competitively as possible,” said Jeff Zhu, president, Cabot Asia Pacific region. “The decision to close the facility is very difficult due to the impact on our people and the community. We have high regard for those who are affected by these actions, and we greatly appreciate their contributions to the company.”    

Cabot expects the closure plan will result in a pre-tax charge to earnings of approximately $33 million, of which approximately $8 million of this amount is cash and $25 million is a non-cash charge.  Annual savings related to the closure are estimated to be approximately $8 million, of which approximately $5 million is cash.

About Cabot Corporation
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company, headquartered in Boston, Massachusetts. The company is a leading provider of rubber and specialty carbons, activated carbon, inkjet colorants, cesium formate drilling fluids, fumed silica, and aerogel. For more information on Cabot, please visit the company’s website at: http://www.cabotcorp.com.

Forward-Looking Statements
Certain statements in this release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as “expect”, “estimate”, “will”, “intend”, or similar words or expressions often identify forward-looking statements.  All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions.  These statements do not guarantee future performance, and we do not undertake to update our forward-looking statements.  Cabot’s actual results may differ materially from those described or implied by our forward-looking statements based on a number of factors, including the factors described in detail under “Item 1A. Risk Factors” in our Form 10-K filed with the SEC on November 26, 2014 for the year ended September 30, 2014.