Cabot Corporation is the world's largest seller of carbon black, an ultra fine particle used primarily in the production of tire rubber, by revenue. The company also generates 10% of its revenues by selling aerogel, a low density insulation material, and other nano-sized particles such as fumed metal oxides, which are nano-sized particles used in the production of adhesives, sealants, coatings, greases, inks and toners.^[1]

Rising oil prices are a major issue for Cabot. Oil and natural gas account for at least 30% of Cabot's cost of sales in FY 2007.^[2][3] Rising oil prices in 2008 have also led Americans to drive less and to buy fewer cars. This has had a direct impact on the demand for car tires in Cabot's U.S. market. In fact, the company shut down one of its carbon black plants in West Virginia in March, 2008 due to decreasing demand for carbon black in the United States. ^[4] To offset falling demand in the US and Europe, Cabot announced that it would expand its carbon black plant operations in China, where the costs of production are relatively low and where they expect demand for carbon black to increase.^[5] Cabot attributes all of their 2.87% increase in revenues in 2007 to its growing presence in emerging markets like China,^[6] and the company expects its growth from 2008-2011 to be driven mainly by its efforts to expand its carbon black operations in China. ^[7]

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