Specialty chemicals company Orion S.A. announced plans to discontinue production at three to five of its carbon black lines at multiple facilities in the Americas and EMEA by the end of 2025, against the back of cash flow challenges.
The company, which supplies carbon black for applications including tyres, coatings, and batteries, described the move as part of its strategy to focus maintenance investments on higher-performing production lines, according to CEO Corning Painter .
“This decision is part of Orion’s strategy to focus maintenance investments on higher-performing production lines – making them more reliable and productive – and to rationalise underperforming assets,” Orion CEO Corning Painter said. “This move is also intended to enhance free cash flow.”
Painter added, “Recently introduced US tariffs, the EU anti-dumping investigation and continued tyre capacity investment in both regions should help reverse the local tire manufacturing share loss. However, given the uncertain timing of this recovery, we are choosing to take this action now.”
Orion has four innovation centres and produces carbon black at 15 plants worldwide.
The company did not specify which particular facilities will be affected by the production line closures.