Bomlitz, Germany - November 30, 2007
As a result of continued strong overall demand, portfolio investment plans and escalating costs to manufacture and deliver its products, Dow Wolff Cellulosics is increasing prices globally across its entire product portfolio by 10 to 15 percent, depending on specific grades and market segments. In some geographies, the price increase could be considerably above this level due to additional costs to serve. The price increases are effective December 15, 2007 or as contracts allow.
The products impacted by this announcement include the entire cellulose derivatives line and all companion chemistries:
- Methylcellulosics: METHOCEL™ and WALOCEL™ hydroxypropyl methylcellulose (HPMC), hydroxyethyl methylcellulose (HEMC) and methyl cellulose (MC) ethers
- Other Cellulose Ether products: ETHOCEL™ ethylcellulose resins (EC); CELLOSIZE™ hydroxyethylcellulose (HEC); Nitrocellulose; and WALOCEL™ Carboxy methylcellulose
- Companion chemistries: POLYOX™ water soluble polymers, DOW™ latex powders, and UCARE™ cationic polymers
“We are unrelenting in our pursuit to develop breakthrough technologies and product functionalities, and are remaining committed to an aggressive multi-year research and asset investment plan for the sustainability and reliability we provide to our customers. Price adjustments will partially offset a number of cost pressures in which we cannot ignore such as rising cellulose pulp costs, record level hydrocarbon & energy costs, and sharp freight increases across our business,” said Eunice Heath, global marketing and sales director, Dow Wolff Cellulosics.
Dow Wolff Cellulosics recently announced industry investments with the addition of new METHOCEL™ cellulose ethers capacity in Stade, Germany expected to come on stream in the coming months; a new full train operational in early 2008 in Midland, Michigan; acceleration of low-viscosity (LV) manufacturing optimization in Bomlitz, Germany for delivery first half of 2008 and further enhanced capabilities to produce more low-viscosity (LV) products in 2009; and a totally new hydroxyethyl methylcellulose (HEMC) production plant in Bitterfeld, Germany to come on line first quarter 2009. This investment strategy is in support of the strong increase in worldwide demand across many end-use applications.
About Dow Wolff Cellulosics
A preferred development partner in its markets, Dow Wolff Cellulosics supplies high-performance cellulose derivatives and complementary chemistries, and is expert in formulation know-how for a broad variety of end-use products in construction, food, personal care, pharmaceuticals, paint and other specialty industrial applications.
A business unit of The Dow Chemical Company, Dow Wolff Cellulosics was created on July 01, 2007 as a new business encompassing the activities of Wolff Walsrode and Dow’s Water Soluble Polymers business. On a pro-forma basis, Dow Wolff Cellulosics had combined revenues of more than US $1 billion in 2006 and employed 2,200 people worldwide. More details about Dow Wolff Cellulosics are on the Web at www.dowwolffcellulosics.com.
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For Editorial Information:
Michael Heinz
Dow Wolff Cellulosics
