Degussa’s coatings and colorants business unit has consolidated its North American colorant manufacturing capabilities, closing its Pleasanton, CA plant and shifting its production responsibilities to the unit’s three remaining NAFTA facilities.
“Technological improvements made to our Lockland, OH facility during an upgrade in 1998, as well as process improvements in the Ontario, Canada and Piscataway, NJ facilities, have made it possible to meet the production requirements without incurring the costs associated with operating four plants,” said Robert Morlino, senior vice president and general manager for the colorant business line. “With this development we can actively control our cost structure without interrupting the quality of service or quantity of supply to our customers in the Americas,” he added.
In other news, the management board of Degussa and the board of directors for Engineered Carbons Incorporated (ECI) have signed a letter of intent to combine the North American carbon black businesses of each company. The new 50/50 joint venture company, Degussa Engineered Carbons, LP, was scheduled to begin operations on Jan. 1. The company will serve the rubber and specialty markets with a full range of furnace and thermal blacks from six U.S. plants currently operated by Degussa and ECI.
Carl Voight, executive vice president of Degussa AG, said “joining the ECI business with the global business of Degussa is an important strategic step in strengthening our fillers and pigments activities and improving the value we bring to our customers.”