ARPRO® Price IncreaseARPRO® prices will increase by € 0.75 per kg, effective 1st October 2008.*JSP has constantly sought and continues to strive to minimise the impact of increasing costs on our highly valued clients and end-users for the specialty product ARPRO®. However, efficiency gains and past price adjustments have been insufficient to cover the relentless escalation in the cost of polypropylene, utilities and freight; directly linked to the cost of oil based feedstocks. Indeed, global economic conditions and seismic shifts in feedstock and energy markets have dramatically impacted business costs. The price increase is essential for the long-term viability of our business, and therefore for the continuation of our service and support of ARPRO®, as well as investment in the creation of new products and markets. The entirely necessary price increase for ARPRO® needs to be passed along the supply-chain for this specialist process industry sector to be viable in the long-term. If suppliers of moulded parts can not cover their cost increases, OEMs and tier-1 suppliers may be faced with a number of negative impacts. These are likely to include: switching of investment in technology and capacity to more attractive markets and lack of supply and consequent impact on production due to insolvency or "protection / re-organisation" filings among the supply base. More background on cost pressures and market drivers can be found in the ARPRO® Market Report - europe 2008. * Subject to precise terms of existing supply agreements.  |
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