BASF to Increase Prices Across All Product Lines in North America
October 03 2005 - 5:52PM
PR Newswire (US)
Cites Unparalleled Increases in Feedstock, Energy Prices, No Sign
of Relief FLORHAM PARK, N.J., Oct. 3 /PRNewswire-FirstCall/ -- BASF
today announced that it is increasing prices for its entire product
line in North America in order to address the record increases in
feedstock and energy costs that it continues to experience in North
America. "We've taken significant actions over the last few years
to drive down costs under our control in order to mitigate the
effects of rising feedstock and energy prices during that period,"
said Klaus Peter Loebbe, BASF Chairman and Chief Executive Officer.
"In light of the continuing and unparalleled increases, these price
actions are necessary to maintain a healthy business and to
continue to meet our customers' supply requirements." Although the
effects of recent hurricanes have exacerbated raw material and
energy costs, continuing imbalance in supply and demand for
petroleum based materials, especially natural gas, is believed to
be the major driver of the present situation in North America.
Since 2003, prices for crude oil and natural gas have increased
roughly threefold and fivefold, respectively, with no signs of
moving back down. These increases have put enormous pressure on
margins in the chemical industry where pricing has not kept pace.
"Energy conservation alone cannot adequately address the widening
gap between available supply and the market demand for petroleum
feed stocks, especially for natural gas, a key raw material for the
chemical industry," said Joe Breunig, President for BASF's
Chemicals, Plastics and Coatings businesses in North America. "A
comprehensive approach to energy management that includes
development can, however, help to stabilize feedstock and energy
pricing and strengthen the chemical industry in the region." BASF
is communicating directly with its customers about these price
actions. BASF -- The Chemical Company. We don't make a lot of the
products you buy. We make a lot of the products you buy better.(R)
BASF Corporation, headquartered in New Jersey, is the North
American affiliate of BASF AG, Ludwigshafen, Germany. We employ
about 10,000 people in North America and had sales of approximately
$11 billion in 2004. For more information about BASF's North
American operations, or to sign up to receive news releases by
e-mail, visit http://www.basf.com/usa. BASF is the world's leading
chemical company: The Chemical Company. Its portfolio ranges from
chemicals, plastics, performance products, agricultural products
and fine chemicals to crude oil and natural gas. As a reliable
partner to virtually all industries, BASF's intelligent solutions
and high- value products help its customers to be more successful.
BASF develops new technologies and uses them to open up additional
market opportunities. It combines economic success with
environmental protection and social responsibility, thus
contributing to a better future. In 2004, BASF had approximately
82,000 employees and posted sales of more than $50 billion. BASF
shares are traded on the stock exchanges in Frankfurt (BAS), London
(BFA), New York (BF), Paris (BA) and Zurich (AN). Further
information on BASF is available on the Internet at
http://www.basf.com/. DATASOURCE: BASF Corporation CONTACT: Robert
Guenther of BASF, +1-973-245-6013, Web site:
http://www.basf.com/usa http://www.basf.com/
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