NORIT AMERICAS ANNOUNCES 2008 PRICE INCREASE
Marshall, TX – November 30, 2007 –Effective January 1, 2008, Norit Americas Inc. is announcing a price increase of 10% to 15%, depending on the specific activated carbon product. All products shipped after that date will be billed at the new price; regardless of the date the order is placed.
Our costs continued to rise in 2007 as they have for the past few years. Energy, chemicals, coal, packaging materials, and health care are just a few items that lead the list of rising costs. See the Producer Price Index for Basic Organic Chemicals with data from 1997 until present. This is the US Government pricing index that best mirrors our industry. From 2002 until now, the cost of producing basic organic chemicals has increased over 78%. While Norit has had moderate price increases during the past five years, we have not been able to capture the tremendous cost increases experienced during that time.
In 2007, we have seen the devaluation of the US Dollar to the point where this must also be considered as we look at all of our imported carbons. The US Dollar exchange rate compared to the Euro shows a devaluation of 11.7% thus far in 2007.
Currently, the activated carbon market is in tight supply as all suppliers strive to become more efficient, expand capacity, and import carbons to meet the growing demand. Norit is no exception as we continue to make capital investments to improve quality, productivity, and increase capacity at all of our facilities worldwide. We will also continue to import various carbons that meet the special needs of our customers.
We value the business you have entrusted to us and assure you that we are continuing our cost control efforts. We appreciate your patience and understanding during this challenging period.
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