From R&P News comes the news that Toyo Tire will build a $450 million passenger and light truck tire plant in Europe. Toyo has selected a 150-acre site about 35 miles northwest of Belgrade for the factory, which will be rated at 5 million units a year at full capacity. Toyo plans to break ground in May 2020 at the site in Indija, Serbia, with production slated to start by January 2022. The plant is expected to hit full capacity by summer 2023 with 500 employees, Toyo said. The plant will be Toyo’s eighth tire factory worldwide and make Toyo the 15th global tire company with production capacity in Europe.
July 31, 2019
PCBL opens R&D center
Phillips Carbon Black has completed a state-of-the-art R&D center at Palej, Gujarat. Spread over 27,000 square feet, the Sushila Goenka Research and Development Centre entailed an initial investment of Rs 20 crore (US$3 million) and currently employs 30 researchers. It will facilitate development of new carbon black products for tire, MRG, and specialty markets, including engineering plastics, fibers, food contact plastics, wire & cables, ink, paints, batteries and other applications.
Michelin considering future of German tire plant
The plant, which specializes in the production of smaller-sized passenger car tires, is facing “substantial difficulties” as competition from Chinese manufacturers increases and European drivers gravitate toward vehicles with larger tires, according to Maira Tuerk, site and change communication manager at Michelin Reifenwerke A.G.
“The range of low-budget products has developed rapidly, (and) since 2010, the market share of the 16-inch premium segment has dropped from 60 percent to 40 percent,” Tuerk said.
The factory employs around 850 and manufactures 8 million tires per year.
July 28, 2019
Orion raising carbon black prices in North America
On July 22, Orion Engineered Carbons announced a price increase for North American carbon black prices, including both rubber blacks and specialty blacks.
Text of the press release follows:
Orion Engineered Carbons S.A. (NYSE: OEC) (the “ Company ” or “ Orion ”), a worldwide supplier of specialty and high-performance Carbon Black, today announced that effective September 1, 2019 or as contracts allow, Orion Engineered Carbons will increase sales prices by $0.08/pound for Rubber grade Carbon Black and $0.07/pound for Specialty grade Carbon Black for all Carbon Black produced and sold in North America to recover the rapidly rising feedstock costs as well as to ensure continued reliable supply.
On all Rubber grade Carbon Black, Orion will increase current base prices by $0.04/pound. This is necessary to reliably secure increased demand while maintaining quality and sustainable supply.
Carbon Black Oil (CBO) is the primary raw material/feedstock used for the production of furnace grade Carbon Black in the U.S. Costs for CBO vary based on the quality and sulfur content. Recently, demand for certain qualities of CBO has increased dramatically. This is due to IMO2020 regulations and by U.S. EPA mandates. Consequently, on all Rubber grade Carbon Black and on select Standard Specialty grade Carbon Black, Orion will implement a CBO surcharge to offset the rapidly rising difference between the cost of CBO and the reference feedstock differential (High Sulfur Fuel Oil). The floor CBO surcharge shall be $0.04/pound and will be adjusted quarterly, except where significant intra-quarter swings require quicker reaction.
For Low Sulfur Specialty grade Carbon Black, we will add a CBO surcharge to offset the differential versus the reference feedstock (1% Low Sulfur Fuel Oil). This surcharge is currently $0.07/pound and will be adjusted quarterly, except where significant intra-quarter swings require quicker reaction.
For the U.S., Orion is also updating certain charges for non-standard services to better reflect actual current costs. The updated list is available on Orion’s website.
Birla Carbon changes feedstock index for North American carbon black pricing
On July 26, Birla Carbon announced that effective August 1 the company will change the pricing mechanism for all North America contract price formulas. The long-used index up to this date, U.S. Gulf Coast High Sulfur Fuel Oil, will change to U.S. Gulf Coast 0.5% Sulfur Fuel Oil.
In a press release announcing the change, Birla Carbon said:
Feedstock to make carbon black is sourced from markets driven by marine fuel. This market is undergoing fundamental changes driven by regulations widely known as MARPOL 2020 or IMO 2020, which establishes the maximum allowable sulfur content in marine fuel at 0.5%. While this regulation is effective January 1, 2020, the supply chain is adjusting now.
Naturally, these changes have impacted carbon black feedstock markets. The high sulfur index historically used in carbon black price formulas no longer reflects the markets in which feedstock is procured. Therefore, this change is necessary to ensure a sustainable supply of carbon black.
Carbon black price formula changes in other parts of the world will be communicated separately, consistent with the timing and manner in which those markets are impacted.
July 14, 2019
Tokai Carbon CB raising carbon black prices in US
On July 11, Tokai Carbon CB (TCCB), the largest carbon black producer in the United States, announced that, effective August 1, 2019, or as contracts allow, the company will increase the price of carbon black products by $0.06 per pound. In addition, the EPA Consent Decree Surcharge will also increase from $0.03 to $0.04 per pound. According to the company, these price increases will provide the needed capital for reinvestment in operations and to complete mandated environmental compliance requirements.
Effective January 1, 2020, TCCB is also changing many of the Standard Packaging and Premium Charges. These charges are shown here: tokaicarboncb.com/pricing-and-terms. The website shows both the current and new charges until the new prices go into effect. Any new agreements concluded in 2019 will use the above pricing structure as well as TCCB’s actual corporate monthly average laid-in CBO cost as the feedstock reference price.
July 11, 2019
Black Bear named Technology Pioneer by the World Economic Forum
Recovered carbon black producer Black Bear has been selected as one of the World Economic Forum’s ‘Technology Pioneers’ alongside 55 other innovators. Black Bear develops technology to recover valuable materials from waste tires.
Each year the World Economic Forum names early to growth-stage companies from around the world as Technology Pioneers. This year, companies from a diverse set of industries have been selected, including developers of AI, IoT, robotics, blockchain and biotechnology.
“We’re excited to welcome Black Bear to this year’s innovative class of technology pioneers. Black Bear and its fellow pioneers are leaders in using novel technologies to transform their industries. We see great potential for these next-generation companies to shape solutions to global challenges and improve society for years to come,” said Fulvia Montresor, head of Technology Pioneers at the World Economic Forum.
Black Bear’s CEO, Martijn Lopes Cardozo, commented, “It’s an absolute honor to be acknowledged as a pioneer by the World Economic Forum. It is a confirmation that our technology is unique and that it carries the potential to have a global impact on both environmental and societal levels. We’ve tackled the waste tire problem by following principles of the circular economy: we identified a waste stream and figured out how to recover these valuable materials as sustainably as possible. We believe that a worldwide transition to a circular economy is essential in solving the climate crisis. This makes it extra rewarding that we’ve been named a tech pioneer and we are looking forward to contributing to the Forum dialogues.”
Read the full press release here.
Omnova sold to Synthomer in $455 million deal
Synthomer will pay $10.15 a share in an all-cash transaction for Omnova, according to a news release. The deal is expected to close by the end of the year or in early 2020, pending regulatory and shareholder approval.
“The offer price represents a premium of 52 percent over Omnova’s three-month weighted average share price of $6.67,” Omnova Chief Executive Officer Anne Noonan said in the release. “The transaction has been approved unanimously by the Omnova and Synthomer boards of directors. We are pleased that Synthomer recognizes the hard work of our employees in executing our multi-year transformation into a leading global specialty solutions provider.
“Omnova complements Synthomer culturally, geographically and by market, while Synthomer’s financial position provides for a very strong combined company that will be well positioned to accelerate growth. This transaction presents increased opportunities for the business and its employees to leverage the combined scale, grow more quickly and profitably, and enhance product innovation in ways that will benefit customers and employees.”
Read the full press release here.
July 8, 2019
Cabot announces carbon black price increase for North America
On June 28, Cabot Corporation announced a price increase of $0.07 per pound for all carbon black shipments made in North America on or after August 1, 2019, or as customer contracts allow. In the press release, Cabot said:
This price increase is necessary to assure customers of continued supply reliability at a time of increasing demand from tire production in the region. Additionally, Cabot continues to make substantial investments and incur significant new costs to reduce air emissions and enhance the sustainability of its operations in the region. Cabot believes these actions will further augment its long-term value proposition to customers based on quality, reliability, and sustainability.
In the press release, Cabot also announced an update to the standard commercial policies for its Reinforcement Materials segment in North America, including changes to standard packaging, transportation, and warehousing premiums. These policies can be found in this PDF from the company.