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PGI to begin implementing additional price increases
31 Mar '10
2 min read
Polymer Group Inc announced that it will begin implementing additional price increases on a global basis in response to rising raw material costs.
Price increases of petroleum-based products from PGI's suppliers have risen in excess of 35 percent since October of 2009 and are expected to continue to increase in the coming months. The rise in prices has been primarily caused by rising crude oil prices in late 2009 and short supply of raw materials during the first months of 2010.
Certain suppliers have declared force majeure and PGI has been impacted directly by reduced allocations on the short supply of raw materials in 2010. The material most affected by these actions is polypropylene, but the costs of all petroleum-based raw materials are higher.
As a result, the company will increase prices of its products to customers with the amounts varying based on product composition. Additional increases are expected based on current raw material market projections.
"We are operating in an environment of substantially rising raw material costs," said Veronica (Ronee) Hagen, chief executive officer. "This is a phenomenon that is not specific to PGI, but affects our entire industry. PGI is committed to providing customers with the industry's best value proposition and supporting them by investing in state-of-the-art capacity worldwide. Price actions are necessary to support our ability to accomplish these goals."
The company is taking many other steps on a global basis to mitigate the impact of higher raw material costs, including key sustainability initiatives that reduce the use of resource intensity.
Price increases of petroleum-based products from PGI's suppliers have risen in excess of 35 percent since October of 2009 and are expected to continue to increase in the coming months. The rise in prices has been primarily caused by rising crude oil prices in late 2009 and short supply of raw materials during the first months of 2010.
Certain suppliers have declared force majeure and PGI has been impacted directly by reduced allocations on the short supply of raw materials in 2010. The material most affected by these actions is polypropylene, but the costs of all petroleum-based raw materials are higher.
As a result, the company will increase prices of its products to customers with the amounts varying based on product composition. Additional increases are expected based on current raw material market projections.
"We are operating in an environment of substantially rising raw material costs," said Veronica (Ronee) Hagen, chief executive officer. "This is a phenomenon that is not specific to PGI, but affects our entire industry. PGI is committed to providing customers with the industry's best value proposition and supporting them by investing in state-of-the-art capacity worldwide. Price actions are necessary to support our ability to accomplish these goals."
The company is taking many other steps on a global basis to mitigate the impact of higher raw material costs, including key sustainability initiatives that reduce the use of resource intensity.
Polymer Group Inc
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