NORIT AMERICAS ANNOUNCES NOVEMBER 1, 2008 PRICE INCREASE
Marshall, TX – October 10, 2008 -Effective November 1, 2008, Norit Americas Inc. is announcing a price increase that will take the place of our previously scheduled January 2009, price increase. All products shipped after November 1, 2008, will be billed at the new price regardless of the date the order is placed.
Norit manufactures a wide variety of carbons and each of our carbon lines has realized a different level of cost escalation. Therefore, we are increasing price for each of our product lines separately to better reflect cost escalations and reduce the impact to our customers.
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Marshall manufactured based activated carbon will increase 10-20%
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Pryor manufactured based activated carbon will increase 25-40%
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Imported activated carbon will increase 12-35%.
Inflation continues to drive our manufacturing costs at accelerated rates, and in the past months we have experienced unprecedented inflationary pressures on our business. Coal prices for coking coal (used to manufacturer activated carbon) have more than doubled due to the world shortage. As we negotiate new coal contracts we face the reality of these huge increases. Higher prices of energy, chemicals, steel, refractory, packaging, and transportation all affect our costs. Some of the major increases we have experienced are raw materials, transportation, chemicals, packaging materials and exchange rate. For example, phosphoric acid prices have increased more than 300%, caustic has increased more than 200%, and hydrochloric acid has increased more than 20%.
To meet the demand for activated carbon, Norit Americas continues to invest substantial capital to give our customers assurance of carbon supply as well as to reduce cost and improve efficiency. Earlier in 2008, we announced the construction of a state-of-the-art production line, the first in over 10 years in the United States, at our Marshall, Texas, facility. Just recently we announced the formation of a joint venture in Canada, which will construct the first of four new production lines that will supply activated carbon to the North American market. Manufacturing closer to home minimizes supply chain risks for you and ensures the high quality you have come to expect from Norit Americas.
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. If you have any questions please don’t hesitate to contact your local sales representative.
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