Lucite® raises prices in Europe, Africa and Middle East

16 Nov 2004 Southampton, UK

Over the past five years, Lucite International has achieved considerable cost reductions through efficiency improvement, the benefits of which have been passed on to its customers in the sanitaryware industry and beyond. However, prevailing circumstances have forced the Company to review pricing levels in order to return margins to levels that justify the re-investment required to support its strategy to sustain the long-term growth of industries and markets requiring Methacrylate derived raw materials.

Paul Henderson, Vice President of Lucite International in Europe, Africa and the Middle East comments, “Lucite International now supplies Lucite® for more than 50% of the world’s acrylic baths and spas and has built its reputation on providing consistently high quality, innovative products that lead in the sanitaryware industry. This is an industry that is being driven by increasingly sophisticated consumers where the demand for ongoing quality improvements, flexibility of supply and constant innovation are high. Our price adjustment is a necessary move to underpin the further investment required to support our customers in satisfying these needs.”

The rising cost of oil is not the only factor affecting the bathroom industry today. Developing nations around the world are also fuelling the demand for steel and prices are rising sharply as a consequence. According to Global Insight, the economic and finance forecast company, China’s consumption of steel alone grew by 110% over the past six years and is continuing to rise. Given that steel baths accounted for around 44% of the market in Europe in 2003, this trend is also likely to have an impact on retail prices.

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