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AOC to increase prices

26 January 2003

AOC will increase prices by US $0.04 per pound on all products, including resins, gel coats, pigments and b-sides in North America shipped on or after February 10, 2003.

According to AOC, the magnitude of December and January sharply higher energy and raw material price increases cannot be absorbed. Several global and regional events are involved.

- Instability of world oil supplies as affected by the Venezuelan crisis and immanent threat of war with Iraq.
- Higher natural gas prices resulting from a colder than normal winter and restricted supply after two hurricanes struck the Gulf Coast.
- Increases in styrene, PG, EG and DG

Events related to terrorist activities, possible war with Iraq, an impasse in Venezuela, and a cold winter are not resolved. These issues forebode more increases in energy and raw material supply. Some raw material suppliers announced increases of $0.06 per pound this week that are effective in February. These are not factored into this announcement.






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