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Hedwin Division Price Increase Announcement

Effective November 6, 2014, all shipments of Hedwin Division CUBITAINER® Liner Products, Blow Molded products, as well as, Hedwin and Reike Brand Caps will increase by $0.03 per pound.

Recently, our suppliers for HDPE, LDPE and LLDPE thermoplastic resins announced a price increase effective October 15, 2014. These price increases are driven by increases in the cost of raw material feed stocks required to produce Polyethylene resins and global capacity for polyethylene production remaining close to full capacity with no new capacity coming on-stream this year or next year.

Hedwin Corporation will continue efforts to optimize our manufacturing costs to keep them as low as possible. However, we can’t absorb the cost of escalating thermoplastic raw materials.

Naturally, should this recent price increase announcement be rescinded by the Polyethylene Resin Suppliers, the Hedwin Division will rescind it as well.

Please contact your Hedwin Corporation Sales or Customer Service Representative regarding how this particular price increase affects the purchase price of the products that you purchase from Hedwin Corporation.

If you are under a Sales Agreement with the Hedwin Division that has a quarterly or semi-annual price adjustment mechanism, this increase will be realized per the terms of our agreement.

On behalf of all Hedwin Division employees, I thank you for your continued business and for the right to earn it …. every day.

Sincerely,
Richard F. Broo
President/CEO


Price Increase Announcement – Hedwin Division Products

To: Our Valued Customers

Subject: Price Increase Announcement – Hedwin Division Products

Effective September 15, 2014, the Hedwin Division is announcing a price increase for the following product lines:

  • Blow Molded Products $0.04 per Pound
  • Cubitainerฎ Products $0.03 per Pound
  • Hedwin Tap Accessories $0.03 per Pound
  • Liner Products $0.03 per Pound
  • Reike Accessories $0.03 per pound

Our suppliers for HDPE and LDPE thermoplastic resins recently announced price increases effective September 1, 2014. Since the first quarter of this year, HDPE and LDPE Resin producers have not tried to implement price increases. These price increases have been anticipated for a few months. However, if this particular price increase from our raw material suppliers is rescinded, the Hedwin Division of Zacros America will rescind it as well.

These price increases are related to ethylene monomer production capacity operating at over 95% global capacity with no new significant production capacity coming on-stream until 2017. Until new polyethylene monomer capacity comes on-stream, polyethylene monomer prices will drive the market price for polyethylene resins.

The Hedwin Division strives to optimize our manufacturing costs to keep them as low as possible and we do not take asking for price increases lightly. Neither do we take receiving price increases from our suppliers lightly. However, we cannot absorb the cost of escalating thermoplastic raw materials.

If you are under a current Sales Agreement with the Hedwin Division for any of the abovementioned products this particular price increase will be executed per the terms of our negotiated agreement. This letter is being sent to you for informational purposes only, so you are aware of the movement in HDPE and LDPE Resin pricing.

On behalf of all Hedwin Division employees, I thank you for your continued business and for the right to earn it …. every day.

Sincerely,

Richard F. Broo

President/CEO

CUBITAINER® is a registered trademark of Zacros America


Hedwin Corporation acquired by Zacros America, Incorporated

To: Hedwin Division of Zacros America Customers

Re: Hedwin Corporation acquired by Zacros America, Incorporated

Dear Valued Customers,

It is our pleasure to inform you that, as of the close of business on June 1, 2014, the business assets of Hedwin Corporation, were purchased by Zacros America, Inc. The transaction was approved by the bankruptcy court in an Order entered on May 15, 2014, which authorized the assignment of Hedwin’s contractual relationship with you to Zacros America Incorporated. Zacros America would be glad to provide a copy of the Order upon request (see contact information below).

Effective June 1, 2014, Hedwin will officially operate as a division of Zacros America.
Its official name will be: Hedwin Division of Zacros America.

Zacros America is a wholly-owned subsidiary of Fujimori Kogyo Co., Ltd., a Japanese corporation that has enjoyed a 50-year relationship with Hedwin. Established in 1914, Fujimori is well-known in Japan for its value-added, high-quality packaging and films. With 100 years of experience, Fujimori continues to shape the global packaging industry with unique and unprecedented innovations created under the ZACROS name and philosophy, from easy-pour pouches that improve convenience in everyday lives, to medical packaging that is safer and more reliable, to functional films for space satellites.

Founded in 1946, Hedwin is best known for its CUBITAINER® product line. It has built a reputation as a global provider of flexible and rigid packaging solutions for the cosmetics, food, flavouring, industrial medical, pharmaceutical and sanitary markets.

Hedwin’s sale to Zacros marries their assets and technical capabilities to create a single company capable of providing state-of-the-art global packaging solutions that will exceed customer expectations. This unique marriage will provide opportunities for rapid new product development, collaborative manufacturing programs, global technology transfer and business expansion, as well as reduced product cost through economies of scale.

The address of Zacros America will be the same as that of Hedwin, as follows:

Hedwin Division of Zacros America, Inc.
1600 Roland Heights Avenue
Baltimore, MD 21211
Telephone #: 410-467-8209
Fax #: 410-467-1761

There will be some changes to operations. Specifically, Hedwin has assigned to Zacros all of Hedwin’s accounts receivable, including the right to receive your payment on such accounts. Therefore, effective as of the close of business on May 31, 2014, your future payments should be made to any of the following accounts:

By Check – Remit To:
Hedwin Division of Zacros America, Inc.
1600 Roland Heights Avenue
Baltimore, Maryland 21211

By ACH Wire Transfer – Remit To:
ABA#: 0260-0959-3
Bank of America
A/C#: 446026708694

By ACH Transfer – Remit To:
ABA#: 0520-0163-3
Bank of America
A/C#: 446026708694

We request that you to update your supplier/customer information accordingly. If you have any questions, please feel free to contact Joseph Wolfson, Vice President of Finance at 410-467-8209 x 327 or at jwolfson@hedwin.com.

Together as one company, Zacros America and its Hedwin Division will help our customers realize increased opportunities to expand their product offerings through a collaborative partnership built on quality, trust and innovation.

We look forward to serving you and thank you for your continued business.

Yours sincerely,

Richard F. Broo
President
Hedwin Division

Kazuhiko Maeda
President
Zacros America, Inc.