Orion S.A. to Increase Prices for Certain Specialty Carbon Black Grades

Rhea-AI Summary

Orion S.A. (NYSE: OEC) has announced a price increase for all Specialty carbon black grades manufactured in Europe and NEROX® products made in South Korea. The price adjustments, effective January 1, 2025, will vary by product, manufacturing process, and location. The company cites rising feedstock and operations costs as drivers for the increase. CEO Corning Painter states the move will ensure continued supply of high-quality Specialty products and enable new product development to support global customers.

Positive

• Price increase implementation shows pricing power and ability to pass costs to customers
• Strategic move to maintain profit margins amid rising operational costs

Negative

• Rising feedstock and operations costs impacting production expenses
• Potential risk of losing price-sensitive customers due to the increase

Insights

Financial Analyst

The announced price increase for specialty carbon black products represents a strategic move to protect profit margins amid rising input costs. This is particularly significant given that specialty carbon blacks command premium pricing and higher margins compared to standard grades. The timing of implementation (January 2025) allows for contract negotiations and customer adjustments. While the exact percentage increase isn't specified, the company's focus on differentiated products suggests they have pricing power in their specialty segments. This should help maintain profitability despite inflationary pressures on feedstock and operational costs. The geographical scope covering Europe and South Korea indicates a substantial impact on the company's revenue streams in key markets.

HOUSTON--(BUSINESS WIRE)-- Orion S.A. (NYSE: OEC), a global specialty chemicals company, today announced it is raising prices for all Specialty carbon black grades produced in Europe as well as for NEROX® made in South Korea. The increase will be communicated individually to customers and will vary depending on the product, manufacturing process and location.

“The price adjustments will ensure that Orion continues to supply the differentiated, high quality Specialty products that customers want during this period of rising feedstock and operations costs,” Orion CEO Corning Painter said. “Additionally, it will enable the development of new products and solutions to support our global customers.”

The new pricing will be effective for all shipments beginning Jan. 1, 2025, or as contracts allow.

About Orion S.A.

Orion S.A. (NYSE: OEC) is a leading global supplier of carbon black, a solid form of carbon produced as powder or pellets. The material is made to customers’ exacting specifications for tires, coatings, ink, batteries, plastics and numerous other specialty, high-performance applications. Carbon black is used to tint, colorize, provide reinforcement, conduct electricity, increase durability, and add UV protection. Orion has four innovation centers and produces carbon black in 15 plants worldwide, offering the most diverse variety of production processes in the industry. The company’s corporate lineage goes back more than 160 years to Germany, where it operates the world’s longest-running carbon black plant. Orion is a leading innovator, applying a deep understanding of customers’ needs to deliver sustainable solutions. 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/20241104990641/en/

William Foreman

Director of Corporate Communications and Government Affairs

Orion S.A.

Direct: +1 832-445-3305

Mobile: +1 281-889-7833

william.foreman@orioncarbons.com

Chris Kapsch

Vice President, Investor Relations

Orion S.A.

Mobile +1 201-572-1018

christopher.kapsch@orioncarbons.com

Source: Orion Engineered Carbons S.A.

FAQ

When will Orion S.A. (OEC) implement the new specialty carbon black prices?

Orion S.A. will implement the new prices for specialty carbon black products effective January 1, 2025, or as contracts allow.

Which products are affected by Orion's (OEC) price increase?

The price increase affects all Specialty carbon black grades produced in Europe and NEROX® products manufactured in South Korea.

Why is Orion S.A. (OEC) raising its specialty carbon black prices?

Orion is raising prices due to rising feedstock and operations costs, and to ensure continued supply of high-quality specialty products and enable new product development.