2006 News

Shin-Etsu announces price increase for silicone products

Rising prices of raw materials and other costs necessitate the step

Tokyo, June 26, 2006: Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo) will increase the price of silicones, one of its main products, effective for shipments made from July 21, 2006. The range of the amount of the increase is 10% to 15%, respectively, product-by-product.

The prices of such key raw materials for silicone products as metallic silicon, methanol, methyl chloride, and platinum being used as a catalyst have been continuing to rise steeply for the past two years. In addition, due to soaring crude oil prices, Shin-Etsu Chemical is faced with severe increase in costs of energy and solvents for processing raw materials as well as rising transportation costs.

So far, with regard to its silicone business, Shin-Etsu Chemical has been making all-out company-wide efforts to reduce costs by implementing such measures as internal rationalization and improving plant utilization rates by endeavoring to increase sales. However, it has become difficult to absorb the entire burden of the increased costs resulting from the soaring prices of raw materials and the other increased costs, and unavoidably, it has become necessary to implement a sales price increase.

It was two years ago that Shin-Etsu Chemical last made such the general price increase for silicone products.

Silicone is a highly functional material that has both organic and inorganic characteristics. They are used as products that can provide high-added value in a wide range of fields as electrical, electronics, automotive, construction, cosmetics and general chemical industries.

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