Overview
Orion Engineered Carbons (OEC) is an $850 million company that produces carbon black. On the commodity side of the business, carbon black is primarily used to strengthen tires. The more lucrative specialty area is used as a pigment in coatings, fibers and inks.
The specialty grades are about 34% of total sales and about 54% of earnings before interest, taxes, depreciation, and amortization. The commodity grades are 66% of total sales and 54% of EBITDA. Clearly, the specialty part of the business is the more exciting area.
Source: OEC Investor Presentation, September 2020
OEC