There are a number of factors driving this decision,” said Jim Voss, president of Flexsys. “We will continue to invest in capacity expansions and new technology to provide our customers with the steady and reliable supply of our Crystex brand and other rubber chemicals that they have come to expect.Our goal is to build on our position as the world's premier provider of insoluble sulfur and the most reliable supplier in the industry.”
We continue to see our raw materials and energy costs surge, making this action necessary. Fortunately, due to our economies of scale, we are able to lower the increase on our Crystex HD OT 20 grade, said Tim Wessel, vice president of Crystex and Antidegradants. Flexsys is focused on delivering to our customers the right products at the right time for meeting the growing demand of the market.
The price increase is effective July 1, 2008, and varies by currency of sale as follows:
Crystex Insoluble Sulfur
Crystex insoluble sulfur is the vulcanizing agent of choice for critical applications in the tire industry, providing the highest level of quality and performance. In addition, Crystex HD insoluble sulfur offers tire manufacturers improved productivity and safety in their manufacturing processes.
Other Product Groups
Flexsys is also increasing prices across other product groups, including: Primary Accelerators (Sulfenamides and Thiazoles), Anti-Reversion Agents (Duralink® and Perkalink®), and Ultra Accelerators. Price increases vary by product line, world region, and currency of sale.
Flexsys products play an essential role in the manufacturing of tires and other rubber products, such as belts, hoses, seals, and footwear. Flexsys is a global business with offices, manufacturing facilities and technology centers around the world. Flexsys has annual sales of over $650 million, about two-thirds of which take place outside the United States.
NOTE TO EDITORS: Flexsys, Crystex, Duralink, and Perkalink are registered trademarks of Solutia Inc. and/or its subsidiaries.
Forward Looking Statements
This press release may contain forward-looking statements, which can be identified by the use of words such as “believes,” “expects,” “may,” “will,” “intends,” “plans,” “estimates” or “anticipates,” or other comparable terminology, or by discussions of strategy, plans or intentions. These statements are based on management's current expectations and assumptions about the industries in which Solutia operates. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, those risk and uncertainties described in Solutia's most recent Annual Report on Form 10-K, including under “Cautionary Statement About Forward Looking Statements” and “Risk Factors”, and Solutia's quarterly reports on Form 10-Q. These reports can be accessed through the “Investors” section of Solutia's website at www.Solutia.com. Solutia disclaims any intent or obligation to update or revise any forward-looking statements in response to new information, unforeseen events, changed circumstances or any other occurrence.
Solutia is a market-leading performance materials and specialty chemicals company. The company focuses on providing solutions for a better life through a range of products, including: Saflex® interlayer for laminated glass; CPFilms® aftermarket window films sold under the LLumar® brand and others; high-performance nylon polymers and fibers sold under brands such as Vydyne® and Wear-Dated®; and technical specialties including the Flexsys® family of chemicals for the rubber industry, Skydrol® aviation hydraulic fluid and Therminol® heat transfer fluid. Solutia's businesses are world leaders in each of their market segments. With its headquarters in St. Louis, Missouri, USA, the company operates globally with approximately 6,000 employees in more than 60 locations. More information is available at www.Solutia.com.
CONTACT: Solutia Inc.