This week, Eliokem S.A.S. made two announcements regarding its Wingstay L antioxidants. On Monday, Eliokem announced that it plans to expand capacity for Wingstay at its Ningbo, China plant. The expansion will boost capacity by 20% and will be complete by June 2008. The plant was built in 2004 specifically to produce Wingstay L for the Asian market.
On Wednesday, Eliokem announced that it would raise prices for Wingstay L by 25% effective July 1. The company attributed the increase to “the continuous and unprecedented escalation in raw material costs,” specifically para cresol. Other factors include the depreciation of the US dollar against the Euro and other currencies, and changes in the Chinese VAT rates in July 2007 that reduced the profitability of products manufactured in China.
Eliokem previously raised prices for Wingstay L by 15% in February 2008 (effective April 1) and by 10% in September 2007 (effective November 1, 2007).
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