Rhodia will continue price hikes in 2008

19 March 2008 21:15  [Source: ICIS news]

NEW YORK (ICIS news)--Price increases will be once again key words for French chemical producer Rhodia this year, CEO Jean-Pierre Clamadieu said on Wednesday.

Clamadieu said in an interview with ICIS news that the rate of raw material price increases has been significant since November. The volatility of the currency situation has only added to pricing pressures, he said.

“We have to make sure that we can pass these extra costs to our customers,” he said.

“We’ve been able to significantly more than compensate raw material and energy cost increases by price hikes in the past, and we are very optimistic that we [can] continue to do that for 2008 although it is a permanent fight in an environment in which raw material costs are increasing very steeply,” Clamadieu added.

Clamadieu said that between 2005 and 2007, Rhodia’s implemented price increases amounting to €387m ($607m), which more than offset combined raw material and energy cost increases of €290m.

The company, which recently posted a 4.5% year-on-year drop in fourth-quarter operating profit, is also in a good situation to weather the current market challenges because of overall good volume conditions from its businesses, he said.

Clamadieu added, however, that the company was suffering from the challenges in the US market despite the company’s small exposure in the region.

($1 = €0.64)

By: Doris de Guzman
+1 713 525 2653

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