VILLEJUST, France (April 24, 2008) — Eliokem S.A.S., on the heels of an announcement that it will boost production capacity at a plant in China, said it will increase prices by 25 percent for its Wingstay L antioxidant on July 1.
The company said profit margins have eroded since 2006 for the antioxidant, widely used in the rubber industry, because of the continuous increase in raw material costs. Recently the firm said it will boost capacity for Wingstay L at its factory in Ningbo, China, by 20 percent by June.
The firm raised prices for a number of products in the Wingstay line, including Wingstay L, by 5-10 percent on Dec. 1, 2007.
Eliokem said the availability of para cresol, used in the production of Wingstay L, has become critical.
The company also blamed the depreciation of the U.S. dollar versus the Euro and other currencies, and a change in the value-added tax in China as reasons for the price hike.