Kingwood, Texas – Orion Engineered Carbons has introduced an environmental compliance surcharge or “EPA surcharge” of 1.5 cents/pound to its price agreements for all products manufactured in North America.
The surcharge will be implemented as of 1 April 2019 and will cover all products sold by the company’s rubber and speciality carbon black business units.
In a 20 Dec statement, the carbon black supplier said the surcharge was intended to offset the “incremental variable costs” incurred by its compliance with a 2017 consent decree with the US Environmental Protection Agency (EPA) and the US Department of Justice.
The EPA surcharge, said Orion, has been stated in price quotations and contracts and would be reviewed on a quarterly basis.
Last December, the EPA reached settlements of ‘clean air act’ claims with Orion Engineered Carbons LLC, Sid Richardson Carbon and Energy Co. and Columbian Chemicals — part of Birla Carbon — to collectively spend more than $300 million to install and operate pollution-control technologies to reduce emissions of harmful air pollutants.