5 Production Lines to Close Orion Shuts Down Global Carbon Black Capacity Amid Tire Market Turbulence

Orion has announced plans to shut down 3 to 5 carbon black production lines across its plants in the Americas and EMEA by the end of 2025, in a move to focus investment on more efficient operations. CEO Corning Painter explained the strategy aims to concentrate maintenance funding on high-performing lines for improved reliability and output, while rationalizing underutilized assets.

While details on affected products or sites remain undisclosed, the statement referenced tire applications, a segment recently hit by sluggish demand due to a surge in tire imports from Southeast Asia and China. Ongoing trade actions—such as new US tariffs and EU antidumping probes—along with renewed local investment, are expected to help local tire manufacturing recover, though the timing remains uncertain.

To counter weak results in its rubber carbon black segment, Orion has also reduced non-plant staff by 6% since late 2024, aiming to save $6 million annually. The company highlights that direct competition, especially from countries like India with looser emissions regulations, remains a core challenge in Europe.

This rationalization plan, Orion says, is designed to improve cash flow and position the company for future market shifts.