DSM increases price for solvent borne resins
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DSM Coating resins announced a price increase between 5 and 8% for solvent born resins except for Aminos. The background is poor profitability due to remaining high cost of raw materials. The prices are not expected to come down soon as the capacity utilization from raw material suppliers continues to be tight due to high general industry output. These new prices will be effective for all orders shipped on or after 1 January 2007 or as otherwise permitted by the term and conditions of customer contracts.
"Since the beginning of 2006 we have absorbed an increase in raw materials around 20% in all product lines and prices do not seem to be coming down soon. We should also bear in mind the negative financial development over the last couple of years which has forced us to close down our Landskrona plant. A price increase is a must to create a sustainable financial situation and to continue to invest in new products. We have recently launched our High Solid Acrylics which have been very well received in the market. Next launch is planned for Q1 and our patented High Solid Alkyds that will meet the strict 2010 VOC legislations, is to be launched in Q2. We will continue to launch at least one new product per quarter and most probably more. We are positioning ourselves as a Specialty Resin Company and our aim is to create win-win situations with our preferred customers." says Business Director - Decorative, Protective and Industrial (DPI), Patrik Lundstrom.
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