Orion Engineered Carbons to Increase Prices for Carbon Black in North America
Orion Engineered Carbons (NYSE: OEC) announced a price increase of 8 cents per pound for all carbon black products produced in North America, effective September 15, 2021. This decision is attributed to rising operating costs due to recently installed emissions control systems and the need for capital investments. Adjustments will also affect service charges and payment terms to reflect increased logistics costs. Orion aims to enhance safety and sustainability in its production processes while maintaining its commitment as a reliable supplier of high-quality carbon black products.
- Price increase of 8 cents per pound may improve revenue.
- Commitment to safety and sustainability aligns with market trends.
- Increased operating costs may pressure profit margins.
- Adjustments to service charges and payment terms could affect customer relationships.
Orion Engineered Carbons (NYSE: OEC), a leading global supplier of specialty and high-performance carbon black, announced today that effective September 15, 2021, or as permitted by customer contracts, the company is increasing prices on all carbon black products produced in North America.
Due to higher operating costs related to recently installed emissions control systems and associated capital investments required to maintain service levels, it is necessary to adjust base prices and environmental surcharges for carbon black by a total of 8 cents per pound. In addition, service charges, payment terms and volume rebates will be adjusted to reflect higher logistics costs, capital commitments and reliability expectations.
This action will enable Orion to further improve safety and sustainability in its carbon black production processes in line with customers’ and stakeholders’ expectations. We affirm our commitment to be a reliable, long-term global supplier of high-quality carbon black products and services to our customers.
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.
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