Orion Announced Plans to Shut Down Carbon Black Plants
Carbon black manufacturer Orion Engineered Carbons plans to rationalize production lines in North and South America and EMEA.
Orion has announced it will cease production of three to five of its carbon black lines at several plants in the Americas and EMEA region by the end of 2025.
"This decision is part of Orion's strategy to focus maintenance investments on higher performing production lines to make them more reliable and productive, and to rationalize underperforming assets," said Corning Painter, CEO of Orion. The move is also expected to improve free cash flow. Painter added, "The recently imposed U.S. tariffs, the EU anti-dumping investigation and continued investment in tire capacity in the Americas and EMEA regions should help offset the loss of market share in local tire manufacturing. However, given the uncertain timing of this recovery, we are choosing to take this action now."
Orion has been listed on the New York Stock Exchange since July 2014. The Group employs around 1,360 people at 14 production sites and four technology centers worldwide. In Europe, the company operates plants in Dortmund, Cologne, Ambès (France), Ravenna (Italy), Jaslo (Poland) and Malmö (Sweden), while the remaining production sites are located in the USA (4), South Korea (2), Brazil and South Africa. The company did not disclose which plants will be affected by the plans.
Orion Engineered Carbons, which has its roots in Evonik's former carbon black business, is a leading supplier of carbon black, a solid form of carbon produced as a powder or pellet. Carbon black is used in numerous applications such as tires, coatings, inks, batteries and plastics for tinting, coloring, reinforcing, electricity conduction, durability enhancement and UV protection, among others.
Orion, headquartered in Houston, Texas, has four innovation centers and produces carbon black in 15 plants worldwide. The company opened a new logistics center at the end of 2020 and a new Battery Innovation Center in 2023 on the site of its largest production plant worldwide and its most important innovation location.
