March 24, 2016
Dear Valued Customer –
Due to announced price increases for the price of polyethylene resins required to produce our core products, effective April 30, 2016 the Hedwin Division of Zacros America will increase prices for our CUBITAINER® and Liner product lines by $0.05 per pound.
The main drivers behind these announced polyethylene price increases are:
- 15% of ethylene production capacity, a feedstock required to manufacture PE Resin, is off-line until May 2016 due to maintenance reasons.
- Contract and spot ethylene raw material prices have increased due to the decrease inethylene raw material supply.
- Polyethylene resin inventories are lower than normal due to higher than expected February sales.
- Export prices for prime and wide-spec polyethylene resins is significantly up versus January and February of this year.
Note: If you currently have a quarterly or semi-annual sales agreement with Zacros America/Hedwin Division, this particular price increase will be implemented per the terms of our negotiated sales agreement. If this is the case, this letter is for informational purposes only.
Orders which are placed upon us prior to April 30th 2016 AND ship before June 30th 2016 will behonored at pricing in effect the day the order was received.
Orders placed upon us after April 30th 2016 OR placed before April 30th 2016 and shipping after June 30th 2016 will be priced per this announced price increase.
Please contact your Zacros America/Hedwin Division Customer Service Representative should you have any questions regarding this price increase announcement.
On behalf of everyone at Zacros America/Hedwin Division, I thank you for your continued business and for the right to earn it …. Every day.
Richard F. Broo