Price Increase Announcement – Hedwin Division Products
August 15, 2014
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 However, if this particular price increase from our raw material suppliers is rescinded, the Hedwin Division of Zacros America will rescind it as well.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.
Richard F. Broo
CUBITAINER® is a registered trademark of Zacros America