01/20/2014 10:45 EST | Updated 03/22/2014 05:59 EDT

Cancarb Sold: Medicine Hat Facility Purchased By Japanese Firm For $190 Million


CALGARY - TransCanada Corp. (TSX:TRP) says it has reached a deal to sell Cancarb Ltd., a facility in Medicine Hat, Alta., that uses super-heated natural gas to make material for industrial and automotive products.

The pipeline and utility giant says Japan's Tokai Carbon Co. Ltd. is buying Cancarb for $190 million.

TransCanada says it's selling Cancarb and it waste heat recovery power plant in order to take advantage of current market conditions and better align its assets with its strategy, which is focused on large-scale pipeline and power generation projects.

Cancarb, acquired by TransCanada in 1981, produces a material called "thermal carbon black," which is used to make high-grade rubber, insulation and ceramics.

The 41-megawatt power plant, added in 2001, uses waste heat from the manufacturing process to produce electricity that's sold into Medicine Hat's electrical grid.

Tokyo-based Tokai is an international supplier of carbon products.

Also on HuffPost

Photo gallery Foreign Firms Moving In On Alberta Oil Patch See Gallery