Orion Engineered Carbons S.A. (NYSE: OEC) – since its formation – has been committed to being a stable and reliable partner to customers in providing the highest quality Carbon Blacks at competitive prices. In order to continue this commitment when facing ever changing developments, Orion has introduced an Environmental Compliance Surcharge or “EPA surcharge” to our price agreements for all customers of products produced in North America for 2019.
This Surcharge is intended to offset the incremental variable costs associated with Orion’s compliance with its 2017 consent decree with the US Environmental Protection Agency and the US Department of Justice. In price quotations and contracts stated the need for an EPA Surcharge, which will be reviewed on a quarterly basis for adjustment as costs become known.
Orion Engineered Carbons will implement a 1.5 cent ($0.015) per pound EPA Surcharge, or price adjustment, as of April 1st, 2019. The Surcharge will be added to all invoices for customers purchasing products produced by one of Orion’s plants in North America and sold by our Rubber and Specialty Carbon Black business units.
Orion looks forward to continuing mutually beneficial relationships with valued customers.