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News 9 Nov 2005 |
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Price rise and a firm commitment to a strategy of re-investment9 Nov 2005 Southampton, UKThe price of Lucite®, the leading brand of sanitary-ware cast acrylic, will rise by €130/tonne from 1 January 2006. This increase is necessary to support the Company’s strategy to re-invest in the long-term development of the business and is a direct response to the high levels of raw material and utility prices that are set to continue into 2006. The new pricing applies to customers in Europe, Africa and the Middle East (EAME).Paul Henderson, VP of Lucite International EAME comments: “We have built a robust global business in the sanitary-ware sector based on strong customer relationships and our ability to supply them locally with consistently high quality, innovative products and services. Our customers in this dynamic marketplace look to us for inspired new developments that will add value to their businesses and we are absolutely committed to continue to deliver in this respect. “As a direct consequence of absorbing higher costs since 2003, our margins have been severely eroded such that re-investment is currently unjustifiable. We began cost readjustment in July 2005 and committed to review the situation after six-months. Unfortunately volatility of oil prices continues with forecasts of ca. $62/barrel into 2006; consequently, a further adjustment is now critical for us to restore margins to the minimum acceptable levels. We also recognise that we have a responsibility to ensure that we remain at the forefront of cost learning and continue to absorb inflation and drive down costs in real terms in order to minimise the impact on our customers.” |
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