Update: Orion 'rationalising' carbon black production in Americas, EMEA
9 Jul 2025
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Carbon black supplier says will discontinue "three to five production lines" by year-end
Houston, Texas – Orion SA has announced plans to discontinue production at "three to five" carbon black lines at multiple sites in the Americas and EMEA by the end of 2025.
The move is part of a strategy to focus maintenance spending on higher-performing lines, CEO Corning Painter said on 8 July.
The aim, he added, is to make these lines “more reliable and productive” while rationalising underperforming assets.
Orion did not specify which carbon black products or facilities will be affected, but referred to tire applications in its release.
“Recently introduced US tariffs, the EU anti-dumping investigation and continued tire capacity investment in both regions should help reverse the local tire manufacturing share loss,” said Painter.
Given the uncertain timing of the future market recovery, the Orion leader said the company had chosen to take the rationalisation action now.
Orion has reported weak results for its rubber black operations over the recent quarters, driven by higher levels of tire imports into North America and Europe, respectively, from Southeast Asia and China.
In response to the challenges, Orion said it initiated a plan in the fourth quarter of 2024 to reduce its non-plant workforce by 6%, aiming to achieve $6 million (€5.8 million) in annualised cost savings by 2025.
In a statement to ERJ 8 July, Painter also highlighted direct competition as one of challenges faced by carbon black producers, particularly in Europe.
European producers, he said, "face imports from countries like India, where competitors don't have limits on air emissions like CO2, sulphur oxides or nitrogen oxides."
Orion expects the rationalisation programme to improve cash flow.
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