Orion adding logistics center in Germany

COLOGNE, Germany—Orion Engineered Carbons S.A. has broken ground on a new logistics center at its plant Cologne. The completed centralized warehouse will add 95,200 square feet of space—enough room for 12,400 pallets, according to Orion.

"The new, modern distribution center will enable us to further grow our business in a location where we have deep roots," Sandra Niewiem, Orion's senior vice president for specialty carbon black and the EMEA region, said in a statement.

The manufacturing plant in cologne is the company's largest, producing 160,000 metric tons of carbon black and more than 100 differentiated grades, according to a news release.

Construction is set to begin in a couple of weeks, and the firm anticipates commissioning the facility in December.

For the project, Orion is partnering with German construction company Goldbeck GmbH and logistics company Grieshaber Logistik GmbH. The new facility, a turkey project of Goldbeck's, is designed to streamline operations and optimize logistics, in part by using automated material conveyor system throughout the warehouse.

"With a space-optimized shuttle warehouse system and the connection to the warehouse via an automated material conveyor system, we will be able to guarantee a smooth and even more efficient flow of goods," Grieshaber Managing Director Gregor Schnell said in a statement.

The new facility also will have eight truck docks, and Orion anticipates about 100 trucks passing through the plant's gates daily.

Orion did not disclose the project's investment but did note that it will lease the warehouse from Grieshaber.