Rickmansworth, UK - Stepan Europe has announced a price increase for all Stepanpol aromatic polyester polyols of Euro 100-150 Euro per tonne.
This will take effect 1 Sept 2008, "although all contractual obligations will be met," Stepan pointed out.
Stepan's director for European Polymers Roger Stubbs said the "drivers behind the increase are not only the raw materials orthoxylene, DEG (diethylene glycol) and flame retardants, but also the energy and transport costs."
"This is the first increase we have applied this year, despite the costs rising throughout this period as we have tried to support our customers during the tough economic climate, particularly in the construction industry," Stubbs added.
But Stepan needs to return to making reasonable margins "in order to sustain our future commitment to the market," Stubbs continued, adding that Stepan is "investing tens of millions of dollars in a plant expansion," in Wesseling. Germany. The group believes that the industry needs this added capacity as the demand for more insulation, and particularly polyisocyanurate (PIR) foam, continues to grow beyond any general growth in Europe.
Stepan claims the new plant, which will produce 120 kilotonnes per year, "will be unprecedented in terms of raw material purchasing leverage, [minimised] overhead costs through economics of scale, and overall product quality and consistency."