Celebrating 50 years in operation, Peter Donnelly, president of Cancarb, left, and Ross Buchholz, vice-president, pose at festivities Tuesday in Medicine Hat that included 200 guests and clients from around the world.--News Photo Collin Gallant
cgallant@medicinehatnews.com@CollinGallant
Cancarb celebrated 50 years in operation on Tuesday with more than 200 guests for a luncheon and a tour the plant in Brier Park.
Dignitaries included representation from 30 corporations from 20 countries that either distribute or use the rubber, steel and ceramic additive from the local plant.
They joined local contractors, employees and retirees hosted by local plant managers and Hajime Nagasaka, the president of Tokyo-based parent company Tokai Carbon.
The plant went online a half century ago in November 1973, producing the carbon black by stripping natural gas as well as power created in the process that has been sold back to the City of Medicine Hat.
The visit also nears the 10th anniversary of the acquisition by Tokai Carbon, announced in early 2014.
“I was 50-50 on the deal at the time … but currently I’m very, very happy,” said Nagasaka, who was the head of the carbon black division when the option to purchase the plant from TransCanada Pipelines arrived with him.
“I had to seriously consider buying it or not, very seriously,” he said citing concerns about blending the specialty production, derived from gas not coal, into the existing units, as well as taking on related power generation sales.
At the time one of the plant’s production lines was also idled due to poor demand, TCPL and local officials allayed concerns and Nagasaka pushed forward with the C$190-million purchase.
“It was a very special case. I thought about it for couple months … but during 10 years the economics have changed very favourably, and we’ve expanded.”
Tokai, which also manufacturers graphite, electrodes and other carbon products, now produces one million tonnes on carbon black in facilities in Japan, Canada, the United States and Thailand.
The Cancarb addition paved the way toward a major expansion into the U.S. at about the same time the local plant underwent a $40-million expansion three years ago.
“Through the highs and lows we’ve been pretty consistent,” said Peter Donnelly, president of Cancarb, who has been with the company for 28 years. “We’ve had four expansions, about one every 10 years, plus we added the power plant, and continue to explore whatever opportunities there are out there.”
To mark the anniversary, the company provided a special $50,000 donation to the Community Foundation of Southeast Alberta to further support a dedicated fund supported by Cancarb Employees and Alumni.
The company notes that demand has recovered since a drop in general economic activity and tire production during the global pandemic.
The compound is used for more than just synthetic rubber however, including specialty applications, gaskets, ceramics and carbide steel.
Each year about 1,000 tonnes is sold in the U.K. alone as an additive to tint and strengthen ornamental concrete and bricks.
The plant was originally proposed in April 1972 by Cantex Associates of Houston with construction beginning of June that year aided by a $1-million federal grant.
Eventually the $5.6-million plant was completed in November 1973 after shares in the endeavour were purchased by Northwest Nitro Chemicals, of this city.
It employed 31 workers and had a capacity of just under 20,000 tonnes per year.
The plant went into production at 1:30 a.m. on Nov. 11, 1973, and the first shipment was made January 25, 1974, according to the News of the day.
Forklift driver Ralph Deis loaded 67,000 pounds on a train car bound for St. Paul Minn. to be used in steel making.
It was purchased by TransCanada in 1981. Today, employees number 87 at the plant that has a capacity of 54,000 tonnes after a sixth production line and a new warehousing system was added in 2021.
