HOUSTON--(BUSINESS WIRE)--Orion Engineered Carbons S.A. (NYSE: OEC) (the “Company” or “Orion”), a worldwide supplier of specialty and high-performance Carbon Black, today announced that effective September 1, 2019 or as contracts allow, Orion Engineered Carbons will increase sales prices by $0.08/pound for Rubber grade Carbon Black and $0.07/pound for Specialty grade Carbon Black for all Carbon Black produced and sold in North America to recover the rapidly rising feedstock costs as well as to ensure continued reliable supply.
On all Rubber grade Carbon Black, Orion will increase current base prices by $0.04/pound. This is necessary to reliably secure increased demand while maintaining quality and sustainable supply.
Carbon Black Oil (CBO) is the primary raw material/feedstock used for the production of furnace grade Carbon Black in the U.S. Costs for CBO vary based on the quality and sulfur content. Recently, demand for certain qualities of CBO has increased dramatically. This is due to IMO2020 regulations and by U.S. EPA mandates. Consequently, on all Rubber grade Carbon Black and on select Standard Specialty grade Carbon Black, Orion will implement a CBO surcharge to offset the rapidly rising difference between the cost of CBO and the reference feedstock differential (High Sulfur Fuel Oil). The floor CBO surcharge shall be $0.04/pound and will be adjusted quarterly, except where significant intra-quarter swings require quicker reaction.
For Low Sulfur Specialty grade Carbon Black, we will add a CBO surcharge to offset the differential versus the reference feedstock (1% Low Sulfur Fuel Oil). This surcharge is currently $0.07/pound and will be adjusted quarterly, except where significant intra-quarter swings require quicker reaction.
For the U.S., Orion is also updating certain charges for non-standard services to better reflect actual current costs. The updated list is available on Orion’s website.
About Orion Engineered Carbons S.A.
Orion is a worldwide supplier of Carbon Black. Orion group produces a broad range of Carbon Blacks that include 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, tires, and mechanical rubber goods such as automotive belts and hoses. Orion runs 14 global production sites. The group has approximately 1,450 employees worldwide. For more information please visit the Orion website www.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.
