Solvay raises TPO, TPE prices in US

Auburn Hills, Michigan - Solvay Engineered Polymers is raising prices on its thermoplastic

polyolefin (TPO) and thermoplastic elastomer (TPE) products. Prices of these engineered polyolefin materials will be raised by five cents (US$ 0.05) per pound. The new prices will take effect on July 1, 2006.

The increase will apply to orders of all sizes, whether truckload purchases or less-than-truckload (LTL) volumes. The new prices will apply to the company's complete portfolio of products: the TPO materials are marketed under the Dexflex, Sequel, Dexpro, and Indure) brand names; and the TPE materials are the company's Nexprene and Respond brands.

In announcing the price increase, Bob Gerlach, the company's vice president for automotive operations, cited, "adverse trends in capacity and pricing for polymer feedstocks. The entire industry had anticipated an easing of prices for propylene, which has not materialised. Instead, supply is still severely constrained, with the effect that monomer and polymer prices remain up, and are projected to remain high - about 35 percent and 20 percent, respectively, since the third quarter of 2005. In that same time, elastomer prices have also risen markedly."

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Press releasefrom Solvay