Orion Engineered Carbons to Increase Hard Carbon Black Capacity at Louisiana Plant

Rhea-AI Summary

Orion Engineered Carbons (NYSE: OEC) will invest in converting a reactor line at its Ivanhoe, La., plant to increase hard carbon black production by 30,000 tons annually by mid-2022. This strategic move aims to meet the growing demand for hard carbon black due to onshoring tire production in the U.S. The company will reduce soft carbon black production by an equal amount, enhancing the supply chain for automotive tires.

Positive

• Investment to convert reactor line at Ivanhoe plant to hard carbon black production.
• Increase in domestic supply of hard carbon black by 30,000 tons per year by mid-2022.
• Meeting demand due to onshoring of tire production in the U.S.

Negative

• Decrease in soft carbon black capacity by 30,000 tons.

HOUSTON--(BUSINESS WIRE)-- Orion Engineered Carbons (NYSE: OEC), a leading global supplier of specialty and high-performance carbon black, announced today that next year the company will invest to convert a reactor line at its plant in Ivanhoe, La., from manufacturing soft carbon black to producing hard carbon black, commonly used in tire treads.

“With the continued onshoring of tire production to the U.S., the carbon black supply-demand balance is getting tighter, particularly for hard carbon black,” CEO Corning Painter said.

“To help support this aspect of the automotive tire supply chain, we are going to invest in converting a reactor at our Ivanhoe plant, increasing the domestic supply of hard black by about 30,000 tons per year by mid-2022. Soft black capacity will be decreased by about the same amount,” Painter added.

Adding carbon black to tires makes them stronger, reduces treadwear, allows tire engineers to fine tune performance and protects from the damaging effects of UV light.

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/20211108006101/en/

William Foreman

Director of Corporate Communications and Government Affairs

Orion Engineered Carbons

Direct: +1 832-445-3305

william.foreman@orioncarbons.com

Wendy Wilson

Head of Investor Relations

Orion Engineered Carbons

Direct: +1 281-974-0155

Investor.relations@orioncarbons.com

Source: Orion Engineered Carbons S.A.

FAQ

What is Orion Engineered Carbons' investment in 2022?

Orion Engineered Carbons plans to invest in converting a reactor line at its Ivanhoe, La., plant to increase hard carbon black production.

How much hard carbon black will Orion Engineered Carbons produce?

Orion Engineered Carbons will increase hard carbon black production by 30,000 tons annually by mid-2022.

Why is Orion Engineered Carbons converting its reactor line?

The conversion is to meet the increasing demand for hard carbon black as tire production moves back to the U.S.

What will happen to soft carbon black production at Orion Engineered Carbons?

Soft carbon black production capacity will decrease by 30,000 tons as a result of the conversion.

What is the significance of hard carbon black in tires?

Hard carbon black is used to make tires stronger, reduce treadwear, and improve performance.