Orion Engineered Carbons announces planned consolidation of production in Korea

Orion Engineered Carbons has announced that it plans to consolidate its manufacturing of carbon black in South Korea into its plant in Yeosu over the next 20 months, resulting in the closure of its plant in Bupyeong [Incheon].

"After review of our operations in Korea, we are announcing our intention to concentrate our Korean production at one site, which will enable us to most effectively serve the domestic Korean market and Asia Pacific export customers, as well as supporting supplies to the rest of the world,” said Jack Clem, Chief Executive Officer of Orion. "The pressures of high labour costs, the cost and availability of essential raw material feedstocksand the continuing need to improve the productivity of our production network are major drivers of this decision, with details to be finalised by year end.”

Clem added: "In the course of transitioning to Yeosu, additional capacity will be shifted to specialty and technically demanding rubber products, supporting our strategy of expanding our leadership in offering higher value added products required by our customers. The consolidation is targeted to occur in mid-2018”

When completed, the 45,000t capacity Bupyeong facility will be dismantled and the site repurposed for commercial and residential use. Bupyeong employs 38 persons in its manufacturing operations.

For further information, customers may contact Mr Morris Qian, Vice President, Business Line Rubber Carbon Black, Asia Pacific (Morris.Qian@orioncarbons.com) or Mr Michael Hu, Vice President, Business Line Specialty Carbon Black, Asia Pacific (Michael.Hu@orioncarbons.com). Other parties may contact Diana Downey, Vice President, Finance and Investor Relations (Diana.Downey @orioncarbons.com).