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July 27, 2017 02:00 AM

Orion raising prices in U.S., idling production line

Rubber & Plastics News Report
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    KINGWOOD, Texas—Orion Engineered Carbons will increase the price of carbon black sold in the U.S., but the firm said that won't be enough to maintain all of its current production lines.

    In a July 27 press release, Orion said it would increase the price of carbon black products sold in the U.S. by five cents per pound beginning Sept. 1, or as soon as contracts allow. Chris Erickson, vice president for the Rubber Carbon Black Business Line in the Americas, said the price increase was "necessary to ensure our long term supply capability."

    In the same release, however, Orion noted that it would idle one of its Orange, Texas, production lines by the end of 2017. The current carbon black price levels throughout North America do not "adequately address the costs of maintaining this production capacity," according to the supplier.

    The firm noted that it would work to assist its customers through both of the transitions.

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