Home / Knowledge / News / Textiles / PGI raises prices in response to unprecedented raw material cost levels
PGI raises prices in response to unprecedented raw material cost levels
03
Jul '08
Polymer Group Inc (PGI) announced that it will begin implementing additional price increases on a global basis in response to increases in raw material costs that continue to reach unprecedented levels.

Price increases of petroleum-based products from suppliers to PGI have risen in excess of 20 percent since March of 2008 and are expected to continue to increase significantly in the coming months, primarily driven by the continued high cost of oil.

Additionally, certain suppliers have declared force majeure and are increasing prices as a result of higher energy and transportation costs. The raw material most affected by these actions is polypropylene, but the costs of all petroleum-based raw materials are higher.

As such, the company will increase prices of its products to customers, the amount of which will vary based on product composition. Additional increases are expected based on current raw material market projections.

"We are operating in an unprecedented raw material environment, the definition of which continues to be challenged," said Veronica (Ronee) Hagen, chief executive officer. "This is a phenomenon that is not specific to PGI, but affects our entire industry. We believe we are best positioned to address the issues due to our global scale and industry leadership.

PGI is committed to providing customers with the best value proposition and to continue offering products where customers need them. Accordingly, price actions such as these are required to ensure that PGI maintains a sustainable business that is positioned to serve customers over the long term."

The company is taking numerous steps on a global basis to mitigate the impact of higher raw material costs. However, the extent of such cost increases and the company's ability to offset them is subject to rapidly changing market forecasts. The timing and eventual amount of such raw material cost increases could negatively impact the company's results during the year and its ability to meet its previously communicated earnings estimates.

Polymer Group Inc

Must ReadView All

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

Indian GDP to grow at 7.5% this fiscal: Arun Jaitley

The GDP of India will grow at the rate of 7.5 per cent in 2017-18 as...

Textiles | On 24th Apr 2017

US’ textile manufacturers applaud Buy American order

US' National Council of Textile Organisations has favoured President...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search