Orion Engineered Carbons to Increase Prices for Rubber Carbon Black In EMEA

Rhea-AI Summary

Orion Engineered Carbons S.A. (NYSE: OEC) has announced a price increase for all rubber carbon black products in the EMEA region, effective August 1, 2021. The average increase will be €110 per ton, driven by rising operational, logistics, and environmental costs. Additionally, adjustments will be made to service surcharges and payment terms. This decision aims to ensure the company's reliability as a long-term supplier of high-quality products and services while adhering to sustainable manufacturing practices.

Positive

• Price increase of €110 per ton may offset rising operational costs.
• Adjustments in service surcharges and payment terms could enhance profitability.

Negative

• Increased product prices might lead to reduced customer demand.
• Rising operational and logistics costs indicate potential long-term financial pressures.

Orion Engineered Carbons S.A. (NYSE: OEC), a leading global supplier of specialty and high-performance carbon black, announced today that effective August 1, 2021, or as permitted by customer contracts, the company is increasing prices on all rubber carbon black products sold in the EMEA region.

Due to rising operating, logistics and environmental costs required to maintain service levels, it is necessary to adjust prices for rubber carbon black by an average of €110 per ton. In addition, the service surcharges and payment terms shall be adjusted to reflect these higher costs.

This action is required to continue to be a reliable, long-term global supplier of high-quality products and services to our customers as we safely and sustainably manufacture our rubber carbon black products.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210701005816/en/

FAQ

What price increase has Orion Engineered Carbons announced for rubber carbon black products?

Orion Engineered Carbons has announced an average price increase of €110 per ton for rubber carbon black products in the EMEA region effective August 1, 2021.

Why is Orion raising prices on rubber carbon black products?

The price increase is due to rising operational, logistics, and environmental costs necessary to maintain service levels.

When will the price changes for Orion's rubber carbon black products take effect?

The new prices for rubber carbon black products will take effect on August 1, 2021, or as permitted by customer contracts.

How will the adjustments affect Orion Engineered Carbons' customers?

Customers will see an increase in their costs for rubber carbon black products, along with adjustments in service surcharges and payment terms.