Evonik to implement surcharge to cover cost increases

Evonik Industries AG, Germany, will apply a surcharge to all deliveries of its High Performance Polymers and Monomers effective August 1, 2008 until further notice. This surcharge needs to be implemented to cover the dramatic increases of raw material, energy and transportation costs witnessed during the last few months. Depending on the specific product line, a EUR/kg resp. US Dollar/kg amount will be added to all invoices. Customers will be individually informed about the surcharge rates they will be charged with.

Evonik continuously undertake massive efforts to reduce costs and to increase productivity in order to maintain its competitiveness even under adverse external circumstances. However, another unprecedented and steep price increase of the key raw material butadiene as well as the recent energy and transportation cost jumps inevitably require further compensation measures. The instrument of a surcharge offers the advantage that future cost reductions can promptly be passed to the customers. At that time the cost situation will improve the surcharge will be terminated.

The High Performance Polymers Business Line focuses on the production of customized products, semi-finished products, and systems based on high-performance polymers. It currently employs more than 1,000 people in Marl and at the production sites of Darmstadt, Witten (both in Germany), Lenzing (Austria), Magnolia (Arkansas, USA), Aboshi (Japan), and Changchun (China). It also has access to a worldwide sales and marketing network that includes the hubs of Marl, Shanghai, and Parsippany.