Solvay Engineered Polymers, Inc., is to raise prices on its thermoplastic polyolefin (TPO) and vulcanized thermoplastic elastomer (TPV) products.
Prices of these engineered polyolefin materials will be raised by US$ 0.10 per pound. The new prices will take effect on October 1, 2005.
The increase will apply to orders of all sizes, whether truckload purchases or less-than-truckload (LTL) volumes. The new prices will apply to the company’s TPO and TPV products, which are marketed under the DEXFLEX, SEQUEL, DEXPRO, INDURE, NEXPRENE and RESPOND brand names.
Citing recent trends and levels of petrochemical prices, company president Fred Young indicated how those developments affect every phase of operations at Solvay Engineered Polymers. “”We have already absorbed significant raw material cost increases over the last two years. And while we had anticipated some relief in this area, this clearly is not the case. Polypropylene and elastomer suppliers are continuing to raise their prices, and these are the primary building blocks of our engineered products.”” Young also points to related prices of gasoline and natural gas, “”which have driven up both the cost of producing our materials and the cost of distributing them to our customers.””
“”Polypropylene supply conditions continue to tighten as global demand remains strong,”” explains Bob Gerlach, the company’s vice president for automotive operations, “”so any cost increase from our suppliers will quickly affect our economics. We no longer enjoy the lead time afforded by gradual cost increases to plan an orderly advance of product prices. Nor is there a consensus about future price levels in olefin-based petrochemicals. This increase, while abrupt, is nonetheless necessary if we are to remain capable of developing and providing products and services that deliver low total-cost solutions for the automotive industry and the other markets we serve.””
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