Orion Engineered Carbons to Consolidate Production in South Korea
SENNINGERBERG, Luxembourg – Orion Engineered Carbons 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 labor costs, the cost and availability of essential raw material feedstocks, and the continuing need to improve the productivity of our production network are major drivers of this decision, with details to be finalized 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 45,000-metric-ton-capacity Bupyeong facility will be dismantled and the site repurposed for commercial and residential use. Bupyeong employs 38 persons in its manufacturing operations.