OCI Liquidates Chinese Carbon Black Subsidiary OJCB After 11 Years of Establishment

OCI has liquidated its local subsidiary in Shandong, China (OJCB), which produced carbon black for the domestic Chinese market.

According to the business community on the 11th, OCI decided to dissolve and liquidate OJCB through a shareholders' meeting resolution in January. OJCB was established in 2014 in partnership with China's Zhaoguang Group, and began operating its local factory in 2016.

The OJCB factory located in Shandong Province occupies a total area of 130,000㎡ (approximately 40,000 pyeong) and produced 80,000 tons of carbon black annually, supplying it to Chinese tire manufacturers. Carbon black is a black pigment made from carbon and is an essential material used in tire production to enhance rubber's heat resistance, abrasion resistance, and rigidity.

However, since the local subsidiary was intended for the Chinese domestic market, it is expected to have no impact on domestic business. OCI President Kim Yushin mentioned during the Q4 earnings conference call in February, "We will liquidate OCI's loss-making carbon chemical business in China, and secure expanded sales of high value-added products and cost improvements."