MIDDLEBURY, Conn. (Aug. 30)—Crompton Corp. is increasing the price of all of its Flexzone anti-degradant products by $1.32 a kilogram effective Sept. 1.
The company said prices of the rubber chemical—used, among other things, in tire production to prevent rubber from cracking—have declined dramatically over the last five years. It said the product line has remained unprofitable for several years, despite continued investment in facilities and aggressive cost-saving measures. The situation has worsened this year because of raw material and energy cost increases, including a tripling in the price of benzene, according to Crompton.
To help compensate, the firm also is implementing a quarterly benzene price adjustment of 2.2 cents a kilogram for every 10-cent-per-gallon increase or decrease in benzene cost above or below the base benzene price of $1.90 a gallon, the three-year average.
Crompton earlier in August announced it is shutting down 20,000 metric tons of worldwide Flexzone capacity by year-end.