Effective March 1, Solutia Inc. will increase the price of adipic acid $0.05/lb. "The increase is being driven by demand, which has remained strong since 2002, and increasing raw material costs," said Mike Berezo, director, nylon intermediates.
"It is imperative that Solutia achieve returns sufficient for continued investment in the business in order to sustain our position as a reliable supplier."
During the past three years Solutia took action to reduce fixed costs and improve process efficiencies. However, recent increases in raw material pricing, notably benzene and natural gas, eroded margins. "While raw material costs may ease sometime in the future, we believe there have been some fundamental shifts in benzene and natural gas economics which will put added cost pressure on our business for the next few years," concluded Berezo.