Orion goes shopping

Orion Engineered Carbons SA and Evonik Industries AG have announced agreements on transactions whereby Orion will acquire Evonik’s 52% percent stake as well as Deutsche Investitions-und Entwicklungsgesellschaft mbH’s (DEG) 15% stake in Qingdao Evonik Chemical Co., Ltd. (QECC).
QECC is a joint venture established by Evonik, DEG and Jiaozhou Finance Investment Center (JFIC) in 1994 based in Qingdao (Shandong Province), China. It has production capacity of approximately 75 thousand metric tons of Carbon Black per annum. The plant is equipped with three production lines and its main manufacturing focus is on high-end Carbon Black products. Through its proximity to key customers, connection to one of China’s largest ports and modern transportation infrastructure, the Qingdao facility is an excellent logistics base for participation in future market growth.
Orion will initially step into the established joint venture in place of Evonik and DEG, but OEC and JFIC are in advanced talks regarding the transfer of JFIC shares to Orion in accordance with regulations governing Chinese state-owned enterprises.
“We are pleased with the progress made on bringing this facility back into our global carbon black manufacturing network,” said Jack Clem, CEO of Orion. “We believe that this acquisition will greatly improve our ability to serve the highly important Chinese market, as well as the rest of Asia-Pacific, over and above the current use of our global network for exports to that region.”
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, colorise 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 1,350 employees worldwide, Orion Engineered Carbons runs 14 global production sites and four Applied Technology Centers.