NEW YORK—Orion Engineered Carbons has laid out the details of its long-term growth plan, targeting mid-cycle adjusted earnings of $500 million by 2025.
The carbon black manufacturer has defined a series of "high margin" opportunities for growth, which include expanding its conductive additives production for electric vehicles and investing in sustainable materials for the rubber markets.
Commenting during the company's investor day on June 8, CEO Corning Painter said Orion followed three themes for its sustainable rubber growth.
These include enabling carbons, where Orion will offer carbon blacks that improve the sustainability of customers; recycled carbons coming from waste tires; and renewable carbons, which Orion will try to extract from the "natural CO2 cycle" from biological feedstock.
"We are not pursuing these (sustainable products) out of a sense of defensiveness," Painter said.
"We make an essential product," he added. "Our raw material is an industrial by-product, it is carbon-rich, if we don't use it, it will go into a boiler and create an immense amount of CO2."
Painter said Orion is investing in the three options because its customers are interested in them.
"We see a business opportunity in this," he said
In addition, the company will tap the "incredible pricing environment" to increase earnings, said the CEO.
"North America has been brewing for a long time. There have been people adding tire capacity here, but there hasn't been a new reactor for rubber carbon black.
"In fact, at the end of the year this year, one factory is going to close," he added.