“Real costs have risen significantly throughout 2004,” said Bill French, vice president of the CICW business team, “and we expect to see similar upward pressure during 2005. We have worked hard to absorb these rising costs but we have now reached a stage where we must implement price increases.
“We have seen significant increases in the cost of key raw materials, of utilities, particularly natural gas, and of transportation and packaging” Mr. French said. “Here at Elementis Specialties, we are committed to working with customers on joint productivity programs in order to offset, as far as is possible, these types of increases. I am sure many of our customers are, however, experiencing similar pressures in their businesses and will understand the need for the price increases announced today. ”