Richmond, Virginia - Carpenter Co.'s European Operations are raising prices for all its foam products in response to increasing raw material and energy costs. Customers will be notified by letter over the coming days about the exact amounts, according to a 26 June statement issued by Jim Hacker, Carpenter's executive vice president.
This latest increase is in response to the constant rising cost of raw materials, said the statement. "Such is the instability in the market that petrochemical suppliers are announcing new raw material prices levels on a monthly basis with no price held for longer than 30 days," Carpenter stressed.
The major US-headquartered foam group added that, "In the last year we have experienced short supply on most of our major chemicals. This has been due to reduced capacity in Europe and the US as newer production plants have opened in the Far East. With limited supply and the rise in oil and gas prices it has been inevitable we face these pressures."
Carpenter went on to emphasise that prices are likely to continue to rise, since all raw materials costs continue upwards as petrochemical producers recover increased feedstock costs. "As a consequence," Carpenter said, "we are not in a position to offer any price stability going forward and it is our opinion that raw material costs will continue to rise over the coming months."
While Carpenter said it realises "that this will be unwelcome news in the present poor economic climate, the foam maker feels "we have little option but to take this action as costs continue to rise at unprecedented levels." (LW)