ERJ staff report (DS)
Villejust, France -- Eliokem has said it will implement a new price increase of 25 percent on sales of Wingstay L, effective July 1st, 2008. This is in addition to 15 percent price rises implemented earlier this month and brings the increase for this year to over 43 percent.
The companysaid, "Wingstay L profit margins have been heavily impacted since 2006 by the continuous and unprecedented escalation in raw material costs. The availability of para cresol, one of the most important chemicals used in the production of Wingstay L has become critical due to very strong demand in high value added and fast growing applications."
It continued, "This persistent trend of margin erosion has been amplified by the constant depreciation of the US dollar against the Euro and other currencies. In addition, the change in Chinese legislation implemented in July 2007 related to VAT refund has further affected the profitability of products manufactured in China such as Wingstay L."
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Press release from Eliokem
Previous Press release (dated 28 Feb) from Eliokem