Orion Engineered Carbons Announces Signing of Consent Decree With EPA

LUXEMBOURG–(BUSINESS WIRE)–$OEC #chemicals–Orion Engineered Carbons S.A. (NYSE: OEC), a worldwide supplier of
specialty and high-performance carbon black, today announced that on
December 22, 2017, a consent decree between Orion Engineered Carbons LLC
(“Orion”) and the U.S. Environmental Protection Agency (the “EPA”), as
well as the Louisiana Department of Environmental Quality, was lodged in
the U.S. District Court for the Western District of Louisiana. Once the
consent decree is entered by the court, it will resolve the EPA’s claims
against Orion that were a part of the EPA’s National Enforcement
Initiative brought against all U.S. carbon black producers. In this
action EPA alleged certain violations of the U.S. Clean Air Act, in
particular concerning past failures to obtain PSD and Title V permits
and implement Best Available Control Technology (BACT).

With Orion as one of the two remaining carbon black companies signing
consent decrees, all five U.S. carbon black producers have settled with
the U.S. government.

Under its consent decree, Orion will further upgrade its pollution
control technology in order to further reduce SO2, NOx and particulate
matter (PM) emissions at its four U.S. carbon black manufacturing
facilities in Ivanhoe (Louisiana), Belpre (Ohio), Borger (Texas), and
Orange (Texas). Orion estimates that the capital expenditures for these
upgrades, to be incurred over approximately six years, are $110-140
million.

Orion also agreed to pay a civil penalty of $800,000 and to perform
environmental mitigation projects totaling $550,000. The penalty and
mitigation project costs are in line with the respective reserves
already established by the company for this purpose.

As previously disclosed, except for certain allegations by the EPA in
2016 relating to Orion’s facility in Orange, Texas, all claims made by
the EPA relate to actions that occurred before Orion assumed control
over its four U.S. carbon black manufacturing facilities. The facilities
were acquired by Orion from a subsidiary of Evonik Industries AG in
2011. Orion’s agreement with Evonik in connection with the acquisition
provides for a partial indemnity against various exposures, including,
but not limited to, capital investments, fines and costs arising in
connection with Clean Air Act violations that occurred prior to July 29,
2011.

“We have worked hard to find a solution to this matter which has been a
focus for our company since the beginning of Orion group. After several
years of review and analysis, we believe this settlement provides the
best outcome for all parties. We will be pleased to see this part of the
story come to a close so that we can begin implementing the actions
necessary to ensure a sustainable supply of U.S. produced carbon black
for our customers,” said Orion’s CEO, Jack Clem.

About Orion Engineered Carbons S.A.

Orion is a worldwide supplier of Carbon Black. We produce a broad range
of Carbon Blacks that include high-performance Specialty Gas Blacks,
Furnace Blacks, Lamp Blacks, Thermal Blacks and other Carbon Blacks that
tint, colorize and enhance the performance of polymers, plastics, paints
and coatings, inks and toners, textile fibers, adhesives and sealants,
tires, and mechanical rubber goods such as automotive belts and hoses.
Orion runs 14 global production sites and four Applied Technology
Centers. The group has approximately 1,457 employees worldwide. For more
information please visit our website www.orioncarbons.com.

Forward-Looking Statements

This document contains certain forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements of future expectations that
are based on current expectations and assumptions and involve known and
unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or
implied in these statements. You should not place undue reliance on
forward-looking statements. Each forward-looking statement speaks only
as of the date of the particular statement. New risk factors and
uncertainties emerge from time to time and it is not possible to predict
all risk factors and uncertainties, nor can we assess the extent to
which any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements. We undertake no obligation to publicly update or revise any
forward-looking statement as a result of new information, future events
or other information, other than as required by applicable law.

Contacts

Orion Engineered Carbons S.A.
Investor Relations
Diana Downey,
+1 832-589-2285
[email protected]