Cabot Corporation Breaks Ground on New Fumed Silica Facility in China

Cabot to increase fumed silica production through investment to meet
market demand in China

WUHAI, China & BOSTON–(BUSINESS WIRE)–Cabot
Corporation (NYSE: CBT) and joint venture partner Inner Mongolia
Hengyecheng Silicone Co., Ltd (HYC) broke ground today on their new fumed
silica manufacturing facility in Wuhai, China.

The project, announced in September 2016, is scheduled to be completed
in 2019, and will further Cabot’s position as a leading producer of
fumed silica. Cabot and HYC are investing approximately $60 million to
build a world-class fumed silica manufacturing facility, with Cabot
owning an 80 percent equity interest. In this mutually beneficial
relationship, Cabot brings advanced fumed silica production technology
and a strong leadership position in the rapidly growing region while HYC
provides a long-term reliable source of feedstock.

CAB-O-SIL® fumed silica is a key ingredient in a variety of
applications, including silicone elastomers, composites, adhesives,
coatings,
energy
storage and consumer
goods. Cabot’s fumed silica production technology ensures a
high-performing and consistent fumed silica product that helps customers
advance solutions in growth markets such as automotive, construction
and renewable energy.

“Today is a momentous day for all of us as we break ground on this
important expansion that will allow us to grow our manufacturing
capabilities to meet the growing needs of our customers,” said Sean
Keohane, president and chief executive officer, Cabot Corporation. “We
would like to thank our partners HYC and the Wuhai Municipality for
their support, and we look forward to becoming a part of this community
and contributing to it.”

The new facility will have a manufacturing capacity of 8,000 metric tons
of fumed silica per year. Cabot’s latest technological advances will be
incorporated in the plant design and operations. These technologies will
enhance Cabot’s leadership position in the industry, while promoting an
industry standard in energy efficiency and recycling of by-product
streams.

“This investment is an important milestone in our corporate strategy to
extend our leadership in performance materials by investing for growth
in our core businesses,” Keohane continued. “We are proud of our
industry and technology leadership in China, and this project further
demonstrates our long-term commitment to this important core market.”

“Our new facility will allow us to better serve our customers in parts
of China where we expect to see significant growth and development in
the coming years. At the same time, it will enable us to strengthen our
overall production capacity to keep pace with growing global demand,”
said Nick Cross, executive vice president and president, Performance
Chemicals segment. “Furthermore, we are committed to consistently
delivering the highest quality products and customer service while
practicing and promoting Responsible
Care. We have been a dedicated leader, promoter and practitioner of
Responsible Care in China, and our new world-class fumed silica
production site in will serve as an example of sustainable development
in Wuhai.”

“We are very glad to establish this partnership with Cabot. We will
provide all-around support for the construction and operation of the new
plant,” said Wang Yongquan, Chairman of Zhejiang Zhongcheng Holding
Group Co., Ltd, parent company of HYC. “HYC will work closely with Cabot
to produce high quality silicone downstream products, in order to meet
the growing demands of the Chinese market.”

Cabot has operated in China for nearly 30 years, and currently operates
manufacturing sites in Shanghai, Xingtai, Jiangxi and Tianjin.

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.

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.

Contacts

Cabot Corporation
Vanessa Craigie, 617-342-6015
Corporate
Communications