ST. LOUIS--(PRIME NEWSWIRE)--April. 8, 2008
Saflex(r), a unit of Solutia Inc. (NYSE:SOA), today announced that effective May 1, 2008, it will begin implementing price increases of up to 40% on its Saflex PVB sheet products (depending on grade and location) to address dramatically rising raw material, energy and transportation costs.
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. 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,"
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.
The Solutia Inc. logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=2620
CONTACT: Solutia Inc.
Media:
Dan Jenkins
(314) 674-8552
Investors:
Susannah Livingston
(314) 674-8914
Saflex(r), a unit of Solutia Inc. (NYSE:SOA), today announced that effective May 1, 2008, it will begin implementing price increases of up to 40% on its Saflex PVB sheet products (depending on grade and location) to address dramatically rising raw material, energy and transportation costs.
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. 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,"
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.
The Solutia Inc. logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=2620
CONTACT: Solutia Inc.
Media:
Dan Jenkins
(314) 674-8552
Investors:
Susannah Livingston
(314) 674-8914