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Dow Epoxy to Raise Prices |
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Written by Chelsey Drysdale
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Thursday, 29 May 2008 |
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MIDLAND, MI – Dow Epoxy plans to raise prices in North America and other world regions as necessary, in response to the current climate of rising costs and shrinking margins.
“Profit margins have substantially eroded in the face of step-change hydrocarbon and energy and other manufacturing costs, and the situation shows no signs of improvement,” said Patrick Ho, business group president, Dow Epoxy & Specialty Chemicals. “We have absorbed our share of the increased costs, but we have no more room and must act immediately and definitively to ensure our business is healthy over the long-term.”
The business is currently meeting with customers to discuss market issues and upward price movement primarily driven by rising costs. Dow incurred new hydrocarbon and energy costs of greater than $2 billion in the first quarter of 2008, and an additional $665 million so far in the second, the company said.
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