MIDLAND, Mich. (AP) - Dow Chemical Co. said Wednesday it will raise all
product prices by as much as 20 percent, beginning June 1, to offset
"staggering" energy and feedstock costs.
The specific size of price increases will depend on each product's exposure
to rising energy, feedstock and transportation costs.
"Our first-quarter feedstock and energy bill leapt a staggering 42 percent
year over year, and that trajectory has continued, with the cost of oil and
natural gas climbing ever higher," Chief Executive Andrew N. Liveris said in a
statement.
Dow spent $8 billion on energy and hydrocarbon-based feedstock costs in
2002. At the current rate, those costs would climb to $32 billion this year, the
diversified chemical maker said.
"For years, Washington has failed to address the issue of rising energy
costs and, as a result, the country now faces a true energy crisis, one that is
causing serious harm to America's manufacturing sector and all consumers of
energy," Liveris continued. "The government's failure to develop a comprehensive
energy policy is causing U.S. industry to lose ground when it comes to global
competitiveness, and our own domestic markets are now starting to see demand
destruction throughout the U.S."
Dow said that in addition to the price increases, it is continuing to
"aggressively" cut costs and speed up its competitiveness review for all
businesses and manufacturing facilities.
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