Press Release

Calgon Carbon Responds to Recently Approved Amendment to the 2004 International Ballast Water Management Convention Implementation Schedule

PITTSBURGH, PA  –  07/13/2017

  • Amendment Expected to Delay the Launch of the IMO Retrofit Market for Ballast Water Treatment Systems for Two Years
  • Amendment Not Expected to Impact the U.S. Coast Guard Regulation Implementation Schedule

Calgon Carbon Corporation (NYSE: CCC) (Calgon Carbon or the Company) today announced its disappointment with an amendment made to the implementation schedule for ships to comply with the International Maritime Organization (IMO) 2004 International Convention for the Control and Management of Ships’ Ballast Water and Sediments (the Convention) that was agreed to at the IMO Marine Environment Protection Committee (MEPC) meetings held last week in London, England.

In summary, the amendment to the Convention implementation schedule generally calls for ships currently in service to comply with the D-2 standard of the Convention at their next International Oil Pollution Prevention Certificate renewal (a certificate requiring renewal every 5 years) following September 8, 2019, rather than immediately after Entry Into Force of the Convention on September 8, 2017 per the previously agreed to schedule. Newly built ships whose keels are laid after the Convention’s September 8, 2017 Entry Into Force date are still required to be compliant with the D-2 standard upon their delivery.

The D-2 standard requires ballast water management (expected to be achieved principally through the use of Type Approved ballast water treatment system equipment) to restrict to a specified minimum the amount of viable, and potentially invasive organisms, allowed to be discharged. This approved amendment to the Convention implementation schedule is expected to be finally adopted at the next meeting of the IMO MEPC in April, 2018.

“We are disappointed that full compliance with regulations to protect the world’s marine ecosystems have yet again been delayed. Every day, millions of gallons of untreated and potentially harmful ballast water are discharged into ports around the world – even though effective treatment solutions are ready and available,” said Randy Dearth, Chairman, President and CEO of Calgon Carbon Corporation. “After the significant investments we’ve made over the last 7 years to develop innovative and cost-effective product solutions for eliminating the spread of invasive species, we remain well-positioned to immediately provide customers – including those who choose to install ahead of the D-2 standard regulatory mandate – with a range of products that deliver superior performance, at what we believe will be the lowest impact to vessel operation.”

The amendment to the Convention is not expected to impact the implementation schedule of the United States Coast Guard (USCG) ballast water regulations, which currently require vessels that discharge ballast in U.S. waters to either install a treatment system or manage their ballast water in another approved way. The Company expects the amendment to the Convention implementation schedule to dampen the pace of near-term market development and demand growth for ballast water treatment systems.

“There are still tens of thousands of vessels worldwide that will require the installation of equipment to meet the requirements of the Convention,” said Chris Todd, Executive Director of Calgon Carbon UV Technologies, LLC. “This amendment will undoubtedly negatively impact the numerous suppliers that lack the financial strength and backing to endure this latest delay. We expect Hyde Marine to remain a key supplier in this space and that this action will not affect our market presence or our ability to provide, deliver, install, and service the Hyde GUARDIAN GoldTM product.”

The Hyde GUARDIAN Gold™ Ballast Water Treatment System (BWTS) has received IMO Type Approval and uses space-efficient filtration and ultraviolet (UV) disinfection to treat ships’ ballast water to prevent the spread of invasive species from port to port. Calgon Carbon currently estimates the expected global ballast water management system market size to be approximately $18 billion to $28 billion and to affect approximately 64,000 ships as a result of the IMO Convention and separate USCG ballast water regulations. The Hyde GUARDIAN Gold™ system is currently in testing for USCG Type Approval under the DNVGL Independent Laboratory.

About Calgon Carbon

Pure Water. Clean Air. Better World.

Calgon Carbon Corporation (NYSE:CCC) is a global leader in innovative solutions, high quality products and reliable services designed to protect human health and the environment from harmful contaminants in water and air. As a leading manufacturer of activated carbon, with broad capabilities in ultraviolet light disinfection, the Company provides purification solutions for drinking water, wastewater, pollution abatement, and a variety of industrial and commercial manufacturing processes.

Calgon Carbon is the world’s largest producer of granular activated carbon and supplies more than 100 types of activated carbon products – in granular, powdered, pelletized and cloth form – for more than 700 distinct applications.

With the recent acquisition of complementary wood-based activated carbon and filtration media capabilities located in Europe, Calgon Carbon becomes an even more global and diverse industry leader in activated carbon, reactivation, and filtration media in the form of diatomaceous earth and perlites.

Headquartered in Pittsburgh, Pennsylvania, the Company employs approximately 1,400 people and operates 20 manufacturing, reactivation, innovation and equipment fabrication facilities in the U.S., Asia, and in Europe, where Calgon Carbon is known as Chemviron.

For more information about Calgon Carbon’s leading activated carbon, filtration media, and ultraviolet technology solutions, visit calgoncarbon.test.

About Hyde Marine

Hyde Marine is the trade name Calgon Carbon UV Technologies, LLC. With more than 100 years in the maritime industry and pioneering development of ballast water treatment technologies, Hyde Marine has become the leading U.S. manufacturer and educator regarding regulations, technologies, installation experiences, and challenges facing this sector. Since its initial launch in 1998, the Hyde GUARDIAN® BWTS has emerged as an industry leader featuring mechanical separation with filtration followed by UV disinfection – with more than 470 Hyde GUARDIAN units sold to date for installation in various ship types and sizes around the world. Visit www.hydemarine.com for more information.

This news release contains historical information and forward-looking statements. Forward-looking statements typically contain words such as “expect,” “believe,” “estimate,” “anticipate,” or similar words indicating that future outcomes are uncertain. Statements looking forward in time, including statements regarding the expected size and value of the global market for ballast water treatment systems and estimates of the rate of growth of the market and the Company’s revenues related to this market, future growth and profitability, price increases, cost savings, broader product lines, enhanced competitive posture and acquisitions, are included in the Company’s most recent Annual Report pursuant to the “safe harbor” provision of the Private Securities Litigation Reform Act of 1995. They involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to be materially different from any future performance suggested herein. Further, the Company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the Company’s control. Some of the factors that could affect future performance of the Company are higher energy and raw material costs, costs of imports and related tariffs, labor relations, availability of capital and environmental requirements as they relate both to our operations and to our customers, changes in foreign currency exchange rates, borrowing restrictions, validity of patents and other intellectual property, and pension costs. In the context of the forward-looking information provided in this news release, please refer to the discussions of risk factors and other information detailed in, as well as the other information contained in the Company’s most recent Annual Report.