Aug 13 2008
In response to dramatically increasing raw material costs, the Plastic Products Unit of Solutia Inc. began raising prices during July. The price increases are going into effect immediately, and where necessary, according to contract terms in place with customers.
Polyethylene is a major raw material component for the Plastic Products unit. Higher petrochemical prices over the past several years and short supply during the summer months have forced the costs of polyethylene to rise significantly, prompting the action.
According to Carey Widder, plastic products business director, "While we have mitigated some of these cost increases through internal measures, we must implement price increases to pass along these rising costs and return the business to margins that justify our continuing reinvestment. Unfortunately, this means some customers will see price changes above 20%."
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