Ticona seeks 5-10% rise in European 'Hostaform' POM price

30 August 2004 10:09  [Source: ICIS news]

LONDON (CNI)--Ticona, the engineering polymers business of German commodity chemicals group Celanese, announced on Monday plans to raise its European prices of Hostaform polyacetal copolymer (POM) by Euro20 cents a kilo (Euro200/tonne).

The proposed increase, which Ticona stressed was needed to restore profit margins eroded by 'explosive' rises in raw material and energy costs, will take effect from 1 September.

Michael Oberste-Wilms, Ticona's European sales director, said in a statement sent to CNI today that recent huge rises in feedstock and energy costs had compelled the company to take action.

"Despite successful restructuring and ongoing rationalisation activities, we cannot absorb such a raw material cost explosion," he said.

Oberste-Wilms told CNI in a telephone interview that the price of methanol, the main raw material for Hostaform, had risen by at least 10% over the last three or four months. He also stressed that Ticona had also faced higher energy and distribution costs.

He said the proposed Hostaform price adjustment represented a rise of around 5-10% over published prices.

Despite increased raw material prices, however, Ticona is increasing POM production capacity at its Bishop, Texas, and Kelsterbach, Germany sites to meet rising demand. Ticona has also invested in a joint venture POM plant in China. The capacity additions are due onstream next year.

By: Neil Sinclair
+44 20 8652 3214

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