“The entire chemical industry is suffering from unprecedented volatility in the global energy markets,” said Russ Henke, vice president of sales, NAFTA. “The detrimental combination of record high oil prices, global shortages in chemical intermediates, namely urea, and tragic natural disasters in the southern U.S. and in India have driven manufacturing costs to unforeseen highs. Flush colors have been hit particularly hard with the increases coming from both pigment intermediates and vehicles.”
“While Performance Pigments continues to make energy efficient and quality maximizing manufacturing changes, it simply cannot absorb these rampant escalations,” added Brian Leen, vice president and general manager for Performance Pigments.
Performance Pigments officials emphasized that this 5 percent increase does not cover its cost discrepancy, and the company would not comment on the possibility of additional increases in 2006.