Solvay Engineered Polymers Announces Thermoplastic Polyolefin Materials Price Increase

Auburn Hills, MI — Solvay Engineered Polymers, Inc., announced that it would raise prices on its thermoplastic polyolefin (TPO) products. Prices of these engineered polyolefin materials will be raised by eight cents (US$ 0.08) per pound. The new prices will take effect on December 15, 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 products, which are marketed under the DEXFLEX®, SEQUEL®, DEXPRO®, and INDURE® brand names. Prices of thermoplastic elastomers (TPEs) -- the company's NEXPRENE® and RESPOND® brands -- will not be affected.

In announcing the price increase, Bob Gerlach, the company's vice president for automotive operations, cited the trend of unrelieved increases in the costs of the company's most important raw materials. "Current pricing of polypropylene and ethylene-based rubber strongly reflects the underlying economics of ethylene and propylene monomer. Prices are being driven by vigorous growth in global demand, at a time when supplies are constrained by capacity limits and aggravated by acute disruptions to delivery."

"The continued escalation of our raw material costs and their tight supply are unprecedented," adds Fred Young, the company's president. "Furthermore, high natural gas and gasoline prices have dramatically increased the cost to produce and distribute our products. Unfortunately, there are no indicators to suggest that these costs will decline significantly over the long term. While we understand the impact this step will have on our customers, our ability to serve them effectively in the future remains this company's primary concern."

SOURCE: Solvay Engineered Polymers