Houston, TX - August 01, 2006
Raw material and energy costs related to the production of polyethylene continue to rise to levels comparable to or higher than historic peak prices. At the same time, strong polyethylene demand continues to increase month-over-month and is significantly depleting inventories. Based on these conditions, The Dow Chemical Company announced a $0.07/lb. price increase across North America for all polyethylene resins, effective August 1, 2006.
"The unyielding rise in the cost of raw materials, such as ethylene and ethane, is severely impacting the production of polyethylene," said Howard Ungerleider, Commercial Vice President of Dow's Base Plastics portfolio in North America. "While ethane has historically tracked with natural gas, earlier this year it made an unprecedented shift and has since been tracking with higher-priced oil. This is one substantial part of why Dow saw its overall feedstock costs increase $1.6 billion in the first half of 2006 compared to the first half of 2005. This is an ongoing challenge, but we are committed to managing the situation to ensure that we are able to reinvest in manufacturing and innovation for our customers."
Resins affected by the price increase include all grades of low density polyethylene (LDPE) resins and high-density polyethylene (HDPE) resins, ASPUN™ fiber grade resins, ATTANE™ ultra low density polyethylene (ULDPE) copolymers, CONTINUUM™ bimodal polyethylene resins, DOWLEX™ polyethylene resins, ELITE™ enhanced polyethylene resins, FLEXOMER™ very low density polyethylene (VLDPE) resins, TUFLIN™ linear low density polyethylene (LLDPE) resins, and UNIVAL™ high density polyethylene resins.
About The Dow Chemical Company
Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
For Editorial Information:
Josiah McClellan
Porter Novelli
(212) 601-8284
josiah.mcclellan@porternovelli.com
Soledad Echagüe
The Dow Chemical Company
(713) 978-2249
