Orion adds distributors in Central America, Caribbean

HOUSTON—Orion Engineered Carbons has signed new distribution agreements with Divsa and Terrachem S.A., bringing the carbon black supplier's products to Central America and the Caribbean.

The Guatemala-based Divsa, a subsidiary of Barentz International B.V., will allow Orion to access the carbon black market between Panama and Belize, while the Dominican Republic-based Terrachem S.A. brings the entirety of the Caribbean space to Orion.

"Divsa is a welcome addition to our distribution network," said David Roth, Orion channel manager. "They have fully-equipped labs and technically adept salespeople to support their customer base."

Roth said Divsa brings regional business connections into the fold for Orion.

"We look forward to partnering with Divsa and servicing our customers," he said.

Jennifer Stroh, Orion director of sales and marketing for Specialties Americas, said Terrachem is familiar with its territory, as well.

"Terrachem has been servicing this market for many years," Stroh said. "They are strategically located in an ideal location, plus they have lab capabilities and the right infrastructure to support customers in the Caribbean region.

"We are excited to be working with Terrachem."

Orion Engineered Carbons produces carbon black as powder or pellets. The material is made to customer specifications for tires, coatings, ink, batteries, plastics and other applications.

Carbon black is used to tint, colorize, provide reinforcement, conduct electricity, increase durability, and add UV protection.

By market segment, about 39 percent of Orion's sales come from specialty carbon blacks and about 61 percent come from the sale of rubber carbon blacks.

The company has averaged between $1.5 billion and $2 billion in net sales over the past several years.

The Luxembourg-based company has entered into numerous partnerships to produce carbon black via renewable processes, such as the use of plant oil feedstocks.

One such ongoing partnership is with Michelin, as the two companies engage in the E.U.-funded BlackCycle project.

Orion maintains one of the broadest ranges of production processes in the industry, including furnace, gas, thermal, lamp and acetylene production methods.

On Jan. 30, Orion took another big step toward sustainability goals, investing $60 million to upgrade its emissions technology at a Borger, Texas, facility, a move the company said will lead to a major improvement in air quality.

Orion also has improved the plant's co-generation system, which converts heat from the carbon black manufacturing process into electricity that can be used to power the plant.

Some of the electricity is sold.

The project has great potential, Orion said. The rubber industry supplier estimates that the newly upgraded system can reduce nitrogen oxide and sulfur dioxide emissions by 90 percent, a decrease that amounts to about 23 total metric tons per day.

Energy conservation systems like the one employed in Borger already have been installed across its plants worldwide.

The Borger facility is the third of four plants that Orion has targeted for sustainable operations upgrades. The company's facilities in Ivanhoe, La., and Orange, Texas, already have been upgraded.

Later this year, Orion said it plans to finish its final U.S. emissions project at its site in Belpre, Ohio.