Cabot Corporation Receives Royalties from Licensing Agreement with Michelin
Michelin to Employ Cabot's Patented Elastomer Composite Process Technology in Tire Applications
BOSTON--(BUSINESS WIRE)-- Cabot Corporation (NYS: CBT) announces that it has reached another key milestone in its technology licensing agreement with Manufacture Francaise des Pneumatiques Michelin for use of Cabot's patented elastomer composite technology in tire applications. Regular royalty payments to Cabot have now begun and will extend through fiscal 2022.
Since 2008, Cabot has been working with Michelin to develop the technology and manufacturing operations necessary to commercialize the technology in global tire markets. Through this agreement, Michelin has exclusive rights to Cabot's elastomer composite process technology for tire applications and is entitled to build and operate plants that utilize this technology.
"This royalty agreement is the continuation of a prosperous and long-term relationship with Michelin, as well as a significant new business opportunity for Cabot," said Patrick Prevost, president and chief executive officer, Cabot Corporation. "The agreement highlights Cabot's technology leadership and deep commitment to developing innovative solutions for the tire industry."
Tire manufacturers are increasingly being challenged to improve tire performances. Cabot's elastomer composites technology enables new tire design opportunities for Michelin.
Cabot's patented technology uses liquid phase mixing rather than conventional dry phase mixing to incorporate reinforcing agents such as carbon black into elastomers. This technology delivers superior dispersion of reinforcing agents such as carbon black within the elastomer, which creates composites that display unique properties.
The same kind of elastomer composite technology utilized by Michelin is available for non-tire applications directly from Cabot through its Transfinity™ brand of elastomer composite products. Customers can use Transfinity materials to engineer significantly longer lasting and/or smaller products for demanding applications in the mining, defense, automotive and aerospace industries.
About Cabot Corporation
Cabot Corporation (NYS: CBT) is a global specialty chemicals and performance materials company, headquartered in Boston, Massachusetts. The company is the world's No. 1 producer of rubber and specialty carbons, activated carbon, inkjet colorantsand cesium formate drilling fluidsand has market-leading positions in fumed silica, aerogel, and elastomer composites. For more information on Cabot, please visit the company's website at: http://www.cabotcorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in the press release regarding Cabot's business that are not historical facts are forward looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.
Vanessa Craigie, 617-342-6015
Erica McLaughlin, 617-342-6090
KEYWORDS: United States North America Massachusetts
The article Cabot Corporation Receives Royalties from Licensing Agreement with Michelin originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.