Orion Engineered Carbons to Implement a Carbon Dioxide Surcharge for All Carbon Black Products Manufactured in Europe

Rhea-AI Summary

Orion Engineered Carbons (NYSE: OEC) announced a carbon dioxide (CO₂) surcharge on all carbon blacks produced in Europe, effective January 1, 2022. This decision aligns with the EU Emission Trading System, which aims for a 55% reduction in greenhouse gas emissions by 2030. The surcharge will enable Orion to maintain its reliability and sustainability in product manufacturing while addressing the additional costs imposed by the emissions trading system.

Positive

• Implementation of a CO2 surcharge allows the company to manage costs effectively.
• Aligns with EU's climate goals, positioning the company as a sustainable supplier.

Negative

• Potential increase in product costs may affect customer demand.

HOUSTON--(BUSINESS WIRE)-- Orion Engineered Carbons (NYSE: OEC), a leading global supplier of specialty and high-performance carbon black, announced today that effective January 1, 2022, the company is implementing a carbon dioxide (CO₂) surcharge on all carbon blacks produced in Europe, to the extent contracts allow.

The official EU Emission Trading System (ETS) aims to support the EU climate neutrality target by 2050 and the intermediate target of at least 55 percent net reduction in greenhouse gas emissions by 2030 compared to 1990. The EU ETS has entered its fourth trading phase (2021-2030) resulting in additional costs based on direct CO₂ emissions for the carbon black industry.

In consequence, the company will introduce a respective surcharge to its customers in order to continue being a reliable, long-term global supplier of high-quality products and services while manufacturing its carbon black products safely and sustainably.

About Orion Engineered Carbons

Orion Engineered Carbons (NYSE:OEC) is a global supplier of carbon black products including high-performance specialty gas blacks, acetylene blacks, furnace blacks, lamp blacks, thermal blacks, and other carbon blacks that tint, colorize and enhance the performance of polymers, plastics, paints and coatings, inks and toners, textile fibers, adhesives and sealants, batteries, tires, and mechanical rubber goods, such as automotive belts and hoses. The company has over 125 years of history providing customized solutions from a network of 14 global production sites and is dedicated to responsible business practices that emphasize reliability, innovation and sustainability. For more information, please visit orioncarbons.com.

Forward-Looking Statements

This document contains certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements of future expectations that are based on current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. New risk factors and uncertainties emerge from time to time and it is not possible to predict all risk factors and uncertainties, nor can we assess the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information, other than as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211004005817/en/

Wendy Wilson

Orion Engineered Carbons

Investor Relations

+1 281-974-0155

William Foreman

Orion Engineered Carbons

Corporate Communications

+1 281-889-7833

Source: Orion Engineered Carbons S.A.

FAQ

What is the carbon surcharge implemented by OEC?

Orion Engineered Carbons announced a CO2 surcharge on products produced in Europe starting January 1, 2022.

Why is OEC implementing a CO2 surcharge?

The surcharge is in response to costs arising from the EU Emission Trading System aimed at reducing greenhouse gas emissions.

When will OEC's carbon surcharge take effect?

The CO2 surcharge will be effective from January 1, 2022.

How does the EU Emission Trading System affect OEC?

The EU ETS imposes additional costs on companies based on their carbon emissions, influencing OEC's pricing strategy.

What products will be affected by OEC's CO2 surcharge?

The surcharge applies to all carbon blacks produced by Orion in Europe.