Midland, Michigan -- Dow Chemical Co., which raised prices on all its products by as much as 20 percent in June, said it will boost prices another 25 percent in July, enact freight surcharges, idle plants and cut production in response to rising energy and hydrocarbon feedstock costs.
The firm said it will add surcharges of $300 per shipment by truck and $600 by rail on Aug. 1 for all North American customers buying chemicals, hydrocarbons and plastics. Freight surcharges will start in other regions later this year, too, Dow Chemical said.
The company temporarily will reduce production or shutdown a number of factories. Dow Chemical said it has sliced its ethylene oxide production globally by 25 percent and its North America acrylic acid output by 30 percent. It also will reduce its European styrene production capacity by 40 percent and has cut European polystyrene production rate by 15 percent.
Among other actions, the firm's Dow Automotive division is planning cost reductions covering facilities, staff and external spending.
From Rubber & Plastics News (A Crain publication)