Industry News

DuPont Performance Coatings Businesses Raise Prices to Offset Increasing Costs for Energy and Feedstocks

Published on 2005-10-03. Author : SpecialChem

DuPont Performance Coatings announced price increases for all of its products, reflecting unprecedented and sustained increasing costs for energy and feedstocks. Businesses participating in the announcement include DuPont Original Equipment (OEM) finishes, DuPont Automotive Refinish Systems, including DuPont Industrial and CoatingsSolutions, and DuPont Advanced Coatings Systems.

The announcement follows an analysis by DuPont Corporate Economist Robert H. Shrouds indicating that record-high energy prices will be a factor in the global energy outlook for the foreseeable future. The study prompted the company to announce earlier this month its intention to raise prices on all products.

"Oil and natural gas prices have increased dramatically during the past 18 months. On top of that, raw materials for DuPont Performance Coatings have increased by more than 15 percent in that same period," said Edward J. Donnelly, DuPont group vice president – DuPont Coatings & Color Technologies, which includes DuPont Performance Coatings. "We expect that our costs for oil derivative and energy intensive materials will continue at elevated levels."

Price increases for DuPont OEM products will range from 12 to 25 percent, depending on specific product and existing customer contracts. The price increases will be effective Nov. 1, 2005, with auto OEM manufacturers and suppliers of automotive OEM painted parts. Despite continuous improvements in productivity and aggressive global sourcing, structural price increases for key raw materials have put the business in a loss position that would prohibit reinvestment economics.

Automotive Refinish Systems products, used in the collision repair industry as well as for trucks and industrial equipment, will rise by varying amounts depending on geographic region and product line. The increases, which will be announced separately, will depend on timing of previously announced increases, local raw material conditions and the magnitude of increases being experienced in transportation costs.

Advanced Coatings Systems, which provides products to the industrial and specialty coatings markets, including powder and specialty coatings, will increase prices from 4 to 11 percent, for specific product categories in addition to increases announced in the second quarter of 2005.

DuPont sales representatives will communicate directly with customers regarding prices and timing of increases for specific products.

DuPont is a science company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.

Source: DuPont

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