Orion Engineered Carbons S.A. (Orion) (NYSE: OEC) and Evonik Industries
AG (Evonik) today announced agreements on transactions where 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.”
“I am thrilled that our plant in Qingdao will become a key pillar of
Orion’s base of operations in APAC, joining our two plants in South
Korea and our regional headquarters in Shanghai. This increased presence
will enhance our portfolio of innovative products and solutions that are
valued by our customers and business partners.”
The agreement is subject to Chinese government review and other
customary closing conditions and is expected to close in the fourth
quarter of 2015. The European Commission approved Orion’s prospective
acquisition of QECC concurrent with its consideration of the sale of
Evonik’s Carbon Black business to Rhône Capital and Triton Advisors in
2011. Until the closing, Orion and QECC will continue to operate
independently.
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 1,350 employees worldwide,
Orion Engineered Carbons runs 14 global production sites and four
Applied Technology Centers. For more information visit our website www.orioncarbons.com.
About Evonik Industries AG
Evonik, the creative industrial group from Germany, is one of the world
leaders in specialty chemicals. In its business activities, which are
spread across three segments-Nutrition & Care, Resource Efficiency, and
Performance Materials-Evonik’s greatest resources are its innovative
prowess and integrated technology platforms. In 2014, over 33,000
employees generated sales of around €12.9 billion and an operating
profit (adjusted EBITDA) of about €1.9 Billion.
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forward-looking statements include those factors detailed under the
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in our Annual Report on Form 20-F for the year ended December 31, 2014
and in Note 11 to our unaudited interim condensed consolidated financial
statements as at June 30, 2015 regarding contingent liabilities,
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