Degussa is raising prices

Due to drastic increases in the costs of energy and raw materials, Degussa AG, Dusseldorf, is planning further price increases worldwide for many of its products. Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht comments: "We have so far tried to absorb these increases in particular through intensive cost management and greater efficiency. However, the extent of the increase in costs is now obliging us to pass on price increases to our customers on a broader basis, not just in individual cases." The costs for key raw materials that the Degussa Group processes into specialty chemical products have risen by double-digit rates this year. These include, for example, C4 crack, crude oil, propylene, acetone and Methanol. Worldwide, Degussa will have to spend around 12 percent more on electricity and natural gas this year. The company is anticipating an even more significant increase in energy costs of over 20 percent in 2006 because of the time lag between price increases and their impact. In line with its decentralized corporate structure, the business units will determine the extent and timing of the price increases for individual products and inform their customers accordingly.

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