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March 12, 2004 12:00 AM

Dow Reichhold raises latex prices, more hikes to follow

ERJ Staff
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    By Patrick Raleigh ERJ On-line news editor

    Research Triangle Park, North Carolina-Dow Reichhold Specialty Latex LLC is raising global prices of its nitrile rubber latex for glove manufacture by $0.05 per dry pound (about $0.05/wet kg). The increase is to take effect from 1 April and may be followed by a further hikes in the third quarter of 2004, said an 8 March statement from the firm.

    The decision to raise prices was prompted by a “prolonged increase in both raw material and energy costs with no clear end in sight,” according to Rob Ewing, global marketing manager at Dow Reichhold.

    “Over the past several years the glove industry's supply chain has been under intense pressure to lower price, with no opportunity to recover any cost increases. Our company, as well as the entire supply chain, has absorbed every cost increase,” Ewing added in the company statement.

    Dow Reichhold has previously announced price increases for various speciality latices in North America is considering additional increases in the next two quarters, according to Dave Gartshore, the firms commercial director for the Americas.

    “Current pricing has not offset the significant cost increases we have experienced, to say nothing of supporting the future investments in product development and technology that our customers demand,” said Gartshore.

    Dow Reichhold Specialty Latex claims to be the world's largest producer of speciality latex. The company is a 50:50 joint venture between Dow Chemical Co. and Reichhold, Inc., part of Dainippon Ink and Chemicals of Japan.

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