Orion Engineered Carbons Seeking to Close Carbon Black Plant in France
By Business Wire News
By Business Wire News
Orion Engineered Carbons S.A. (NYSE: OEC), a worldwide supplier of specialty and high-performance Carbon Black, today announced that the management of its company in France, Orion Engineered Carbons SAS, has begun consultations with the Works Council at its Ambѐs, France facility in order to implement a restructuring and down staffing with a potential cessation of production at the site by the end of 2016.
Jack Clem, Orion’s group CEO, said that in order for the group to remain competitive in today’s global marketplace, it must fully utilize the capabilities of its carbon black operations, concentrating resources at more efficient facilities and those capable of producing technically special and unique grades that can compete in today’s challenging environment.
“Orion remains committed to maintaining its position as the leading producer of specialty carbon blacks and a major supplier of carbon blacks to the global rubber industry,” he added. “The consolidation of the Orion group’s manufacturing operations in Europe would be another step in improving our sustainability to better serve our existing markets particularly those requiring more specialized products to meet their end customers’ demands.”
The French Orion plant employs approximately 40 people.
“We regret the impact this restructuring may have on our employees and their families,” said Clem. “The men and women who work in our Ambѐs carbon black operation have always worked diligently to support the company.” Clem said the local management will work with the employee representatives to assist employees directly impacted by a potential closure with a comprehensive social plan.
According to Clem, in the event manufacturing is stopped the plant would be deactivated simultaneously with the depletion of the existing stocks, thus fulfilling ongoing existing customer commitments until depletion.
Ambѐs is a commune located in the Aquitaine region in the south-west of France, 20 km from Bordeaux and 480 km from Paris. The facility in Ambѐs was founded by the American Philips Petroleum Company and Continental Carbon Company in 1959 and began operations in 1960 as Cofrablack. It was purchased by Degussa, the predecessor to Orion Engineered Carbons, in 1986.
About Orion Engineered Carbons S.A.
Orion Engineered Carbons is a worldwide supplier of Carbon Black. The company offers standard and high-performance products for Coatings, Printing Inks, Polymers, Rubber and other applications. Our high-quality Gas Blacks, Furnace Blacks and Specialty Carbon Blacks tint, colorize and enhance the performance of plastics, paints and coatings, inks and toners, adhesives and sealants, tires, and manufactured rubber goods such as automotive belts and hoses. With 1,530 employees worldwide, Orion Engineered Carbons runs 15 global production sites and four Applied Technology Centers. For more information visit our website www.orioncarbons.com.
Forward Looking Statements
This document contains certain forward-looking statements with respect to our financial condition, results of operations and business. These statements constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among others, statements concerning the potential exposure to market risks, statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions and statements that are not limited to statements of historical or present facts or conditions. Some of these statements can be identified by terms and phrases such as “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “could,” “should,” “may,” “plan,” “project,” “predict” and similar expressions. Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include those factors detailed under the captions “Note Regarding Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2015 and in Note 9 to our unaudited interim condensed consolidated financial statements as at March 31, 2016 regarding contingent liabilities, including litigation. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information, other than as required by applicable law.
Orion Engineered Carbons S.A.
Diana Downey, +1 832 445-3865