Luxembourg – Orion Engineered Carbons SA is idling a rubber carbon black production line at its Orange, Texas facility, effective at the end of the year, according to the carbon black supplier.
In a 27 July statement, Orion said that the decision was made as a result of current price levels of rubber carbon blacks in North America which “do not adequately address the costs of maintaining this production capacity.”
The company said it was assisting affected customers through appropriate transition plans.
Additionally, the carbon black supplier also announced that it is increasing prices on all rubber carbon blacks sold in the US as of 1 Sept or as contracts allow by five cents (5¢) per pound.
“We are increasing prices in order to continue the substantial investments in our North American rubber black production network essential to sustain safety of supply,” said Chris Erickson, Orion’s vice president, rubber carbon black business line, Americas.
The increase in pricing and the investments in production, said Erickson, were necessary for long-term supply capability of Orion.