Dow forced to hike chem product prices - Liveris

20 November 2007 20:50  [Source: ICIS news]

TORONTO (ICIS news)--Dow Chemical sees itself forced to increase product prices to help offset record high energy and feedstock costs, chief executive Andrew Liveris said on Tuesday, adding that oil and energy prices were expected to climb further going forward.

 

“As of this writing, oil is approaching the once-unimaginable threshold of $100 a barrel … the only practical alternative left to us is to take action on the pricing of many of our products in an effort to offset at least a portion of the continuing rise in energy and hydrocarbon costs,” Liveris said in a letter to customers.  

 

The price increases were necessary despite many internal actions Dow has taken in recent years to reduce costs and improve its energy efficiency, he said.

  

Escalating energy and feedstock costs were putting enormous pressures on an energy-intensive chemicals maker such as Dow, he said.

 

Dow’s feedstock and energy bill would be nearly $25bn (€17m) this year, some $3bn more than in 2006 and $17bn more than the company was paying in 2002, said Liveris.

 

“Unfortunately, market forecasts indicate that these costs will continue their steep upward climb for the foreseeable future,” he added.

 

($1 = €0.68)

By: Stefan Baumgarten
+1 713 525 2653

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