Luc De Temmerman, senior vice president of Solutia Inc. and president of the Saflex business, made the announcement in light of further upward movement in raw material costs and increasing tightness in the supply of critical chemical feedstocks. "Industry forecasts in late 2007 did not predict cost increases of this magnitude, and we are now at a point where sourcing raw materials at continuously higher prices makes no sense for our business unless the effects are passed on," said De Temmerman.
Dramatic increases in the price of oil, which occurred since Saflex PVB sheet contract prices were set during late 2007, have resulted in significantly higher prices for chemical feedstock raw materials. Higher energy prices have also increased chemical manufacturing costs and driven up the cost of transportation. In addition, shortages of key raw materials for PVB resin have exacerbated the situation.
Saflex has been investing heavily to meet growth in demand for its PVB sheet. It has constructed a new PVB sheet production facility in Suzhou, China; added capability at its PVB sheet production facility in Santo Toribio, Mexico; and is close to completing a major new PVB sheet production line at its facility in Ghent, Belgium.
Saflex has also been adding capacity for PVB resin, the key raw material for PVB sheet, in the United States and Europe to meet this new demand. Saflex is known globally as the leader in PVB quality and reliability. When laminated between layers of glass, Saflex PVB interlayers greatly enhance the performance characteristics of glass, providing benefits such as safety, security, UV protection, and sound attenuation. For more information about Saflex visit: http://www.saflex.com
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.Forwardlooking 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 forwardlooking 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," Solutia's quarterly reports on Form 10-Q, and in filings with the U.S. Bankruptcy Court in connection with the Chapter 11 case of Solutia Inc. and 14 of its U.S. subsidiaries. These reports can be accessed through the "Investors" section of Solutia's website at www.solutia.com. The bankruptcy court filings can be accessed by visiting www.trumbullgroup.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.
About Solutia Inc.
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(r) interlayer for laminated glass; CPFilms(r) aftermarket window films sold under the LLumar(r) brand and others; high-performance nylon polymers and fibers sold under brands such as Vydyne(r) and Wear-Dated(r); and technical specialties including the Flexsys(r) family of chemicals for the rubber industry, Skydrol(r) aviation hydraulic fluid and Therminol(r) 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.