International.
Orion Engineered Carbons announced that it plans to consolidate its carbon black manufacturing in South Korea at its Yeosu plant over the next 20 months, resulting in the closure of its plant in Bupyeong, Incheon.
"After reviewing our operations in Korea, we are announcing our intention to concentrate our Korean production on a site that will allow us to more effectively serve the domestic Korean market and Asia-Pacific export customers, as well as support supplies to the rest of the world," said Jack Clem, CEO of Orion. "The pressures of high labor costs, the cost and availability of essential raw materials, and the continued need to improve the productivity of our production network are the main drivers of this decision, with details to be finalized by the end of the year."
Clem added, "Over the course of the transition to Yeosu, the additional capacity will be transferred to specialized and technically demanding rubber products, supporting our strategy to expand our leadership in delivering higher value-added products that our customers need. Consolidation is planned for mid-2018."
Once completed, the 45,000-metric ton Bupyeong facility will be dismantled and the site reused for commercial and residential use. Bupyeong employs 38 people in its manufacturing operations.
