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AOC and Reichhold to Increase Prices

30 April 2007

Reichhold and AOC will both increase prices by US $0.05 per pound on resin products sold in North America.

Reichhold will increase prices by $ 0.05 per pound on all unsaturated polyester and vinyl ester resins sold in North America for the composites industry effective for all orders shipped on or after May 25.

“Raw material costs have continued to escalate, driven by increases in feedstock prices and tightening of supply due to unplanned shutdowns of key raw material producers and global movement of materials to expanding markets,” said Al Naser, Reichhold vice president of sales, composites North America. “The demand for many of the feedstocks used to produce raw materials for unsaturated polyester and vinyl ester resins has increased due to demand in competing applications, such as the addition of benzene and mixed xylenes to boost the octane for gasoline,” Naser continued. “Reichhold can no longer afford to absorb the increases in raw material costs coupled with increases in the cost of energy and transportation,” he said. “Reichhold is making every effort to limit the impact of these escalating costs upon product pricing, and appreciates the understanding of its customers as we work through these challenging periods,” Naser said. “We continue to invest in technology and innovation to increase the value we bring to our customers and the markets they serve,” he concluded.

AOC will increase prices by US $0.05 per pound on all resin products sold in North America shipped on or after June 1, 2007.

AOC gave the reason that crude oil prices are again sustained well above $60 per barrel as the production cuts by OPEC in late 2006 and early 2007 take effect. The trade continues to react daily as Geopolitical events especially in the Middle East unfold and concerns over disruption in supply continue. Natural Gas prices strengthened in recent months as cold winter weather has continued throughout the majority of the United States. Natural Gas in storage is now well below levels at this time last year aiding to the strength in NG pricing. As a result, feed stock prices as can be seen in gasoline prices and consequently raw material prices used to produce UPR have increased dramatically in the March, April and May time frame.






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