
OEC Tank Farmy
The Orion Engineered Carbons (OEC) tank farm project in Zone 7 of the Coega Special Economic Zone (CSEZ) in Gqeberha, in the Eastern Cape, is officially up and running. The state-of-the-art facility is a crucial step forward for South Africa’s energy and industrial sectors. BAIC South Africa had the distinct privilege of participating in the much-anticipated launch of this landmark project late last year, joining industry pioneers, government representatives, and key stakeholders to celebrate a shared commitment to innovation, sustainability, and economic growth.
But why is this new facility so significant for forward-thinking automakers like BAIC? We dive into the details in this post.
Orion Engineered Carbons (OEC) Tank Farm Project
The state-of-the-art Tank Farm is instrumental in transporting black feedstock oil from the Port of Ngqura for subsequent storage and use in the production of carbon black, a vital component in tyre manufacturing and other high-performance applications. The facility, which features two massive storage tanks, each with a capacity of 18,000 m³, is supported by cutting-edge infrastructure, including a 5.4-kilometer pipeline connecting it to the Port of Ngqura.
The facility offers BAIC a strategic advantage. It ensures consistent access to vital materials such as carbon black and supports its mission to deliver exceptional vehicles to South African and global markets. At the launch, Justice Ngwenya, Chief Director of Infrastructure at DTIC, stated, “The automotive industry is crucial for job creation, economic growth, and exports. Funding this initiative was driven by the need to protect and create jobs in the automotive sector. The facility’s construction created 267 jobs through six SMMEs, with 100 more expected during operations.”
The Tank Farm Project resulted from a successful collaboration between the Coega Development Corporation, the DTIC, the Eastern Cape government, the Nelson Mandela Bay Municipality, and the Transnet National Ports Authority. The DTIC funded the project with an investment of R273 million, as reported in a recent government statement.
Why Carbon Black Matters to Auto Manufacturing
Carbon-based materials have a history that stretches back millennia, evolving from ancient civilisations to becoming essential in modern technological advancements. Globally, demand for carbon black is projected to grow at a CAGR of 4.8%, reaching US$ 22,133.52 million by 2033. One of its most important roles is in the automotive industry, where it is increasingly being used in various end-use production of:
- Tyres: Carbon black is a key ingredient in tyre production. It improves processing, strength, and durability, directly impacting tyre performance, especially safety. It also extends tyre life and enhances fuel efficiency.
- Rubber Goods: Carbon black enhances the mechanical strength, vibration resistance, and conductivity of rubber products like hoses, belts, and gaskets, improving their overall performance and durability.
- Plastics and Coatings: Carbon black is used in automotive plastics and coatings to protect parts from UV damage, preventing cracking and degradation caused by sunlight exposure. It also improves the surface finish of components, giving them a polished, durable appearance.
- Paint Additives: Carbon black is commonly used as a pigment in paint, enhancing performance, durability, and the colour of automotive parts.
The expansion of automotive manufacturing in emerging economies is driving an increased demand for essential materials like carbon black. Without a reliable and consistent supply, production timelines and quality standards would suffer serious setbacks. The OEC Tank Farm will significantly contribute to sustaining growth and competitiveness in the sector.
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