Industry News

Reichhold Announces Price Increase for Unsaturated Polyester Resins Sold in US and Canada $ .10 per Pound Effective September 6th

Published on 2004-08-17. Author : SpecialChem


Reichhold announced a price increase of $ .10 per pound on all unsaturated polyester resins sold in the United States and Canada. It is effective for orders shipped on or after September 6, 2004. This is in addition to the increase which took effect August 5.

"The entire unsaturated polyester industry is experiencing unprecedented raw materials escalation in both quantity and frequency," explained Bruce Fawcett, Reichhold senior vice president, commercial.

Benzene, a key component of styrene, continues on a record-setting pace, reaching all-time high pricing for the third month in a row in August. Another key polyester resin raw material, maleic anhydride, is on sales control, making supplies both limited and costly. Among other ingredients on the rise, diethylene glycol prices have increased over 100% in 2004.

"There is high demand in the marketplace right now," Fawcett explained. "While we certainly welcome this increased volume, our profitability has been severely eroded due to the cost pressures associated with raw materials."

"To ensure we are able to keep pace with the industry demands, significant capital investments will be required," Fawcett continued. "However, without an improved outlook on profit, justification of further large capital investments will be difficult to justify."

"As always, we thank our customers for their patience in this year which is bringing high demand for composites products, but also significantly higher raw material costs," Fawcett concluded.

About Reichhold

Reichhold, with its world headquarters and technology center in Research Triangle Park, North Carolina, USA, is, together with its parent, Dainippon Ink & Chemicals (Tokyo, 4631) the world's largest manufacturer of unsaturated polyester resins and a leading coating and performance resins for the automotive, appliances, coatings, plastics, textile, construction, transportation, marine and graphic arts markets.

Reichhold has manufacturing operations throughout North America, Latin America and Europe. Founded in 1927, Reichhold's parent, Dainippon Ink & Chemicals (Tokyo, 4631) is also the world's largest producer of printing inks.

Source: Reichhold

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