Midland, MI - August 10, 2006
Effective September 1, 2006, the Dow Paper Latex business is increasing the prices of hollow plastic pigment, solid plastic pigment, styrene/butadiene (S/B) latex and styrene/acrylate (S/A) latex products sold into the paper industry in the United States and Canada. All S/B and S/A latex prices will increase by US $0.04 per dry pound and US $0.04 per dry pound for hollow plastic pigment and solid plastic pigment.
The company cited the continuing escalation in raw material and energy costs, as well as significant increases in transportation costs, as key reasons for the price increase. According to Cindy Elliott, commercial director for Dow Paper Latex, raw material cost increases continue to outpace price increases, which is not a sustainable situation.
“The costs of raw materials and energy continue to skyrocket and have reached record levels,” said Elliott. “In addition to major raw materials such as butadiene and styrene, we are seeing significantly higher costs for most other raw materials and additives used in the manufacture of our products. For example, we have had significant increases in the cost of acrylonitrile, which is another major raw material used to produce some latexes. Dow is committed to maintaining a business model that will allow us to continue to invest in product technology and manufacturing resources to help meet customer needs,” Elliott concluded.
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:
Becky Evans
The Dow Chemical Company
(989) 636-5847
Urszula Murphy
Gibbs & Soell PR
(212) 697-2600 ext. 296
