Orion S.A. (NYSE: OEC), a leading global specialty chemicals company, has announced plans to discontinue production at three to five of its carbon black production lines across facilities in the Americas and EMEA regions by the end of 2025.
The decision reflects Orion’s broader strategy to optimize its manufacturing network by focusing maintenance investments on higher-performing lines. According to CEO Corning Painter, the move is expected to improve reliability, productivity, and free cash flow while phasing out underperforming assets.
“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 rationalize underperforming assets,” Painter said. “This move is also intended to enhance free cash flow.”
The announcement comes amid ongoing market pressures and policy changes in major regions. Painter noted that recently introduced U.S. tariffs, the EU’s anti-dumping investigation, and continued tire production investments across both regions are likely to support a rebound in local tire manufacturing. However, due to the uncertain timing of that recovery, Orion is opting to make proactive adjustments now.
The company has not yet disclosed which specific sites will be affected.
