Dow Europe: Additional Price Increases for Polyethylene and Polystyrene Resins

Rising raw material and energy costs for polyethylene and polystyrene production are placing pressure on polyethylene and polystyrene resins producers. Based on these conditions, Dow Europe GmbH is announcing further price increase across the European region for all polyethylene and polystyrene resins.

"We cannot afford to absorb increases in energy and raw material costs of this magnitude," said Isidro Quiroga, Commercial Vice President of Dow´s Base Plastics portfolio in Europe, the Middle East and Africa. The cost of oil recently broke the $70 a barrel price for the second time in less than a year. "We must take action to restore our margins to ensure that we have a platform for reinvestment in manufacturing and innovation for our customers."

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Effective May 1, 2006, Dow will increase prices in Europe by a further 50 Euro per metric ton for all grades of its low-density polyethylene (LDPE) resins and high-density polyethylene (HDPE) resins, DOWLEX™ polyethylene resins, ATTANE™ ultra low density polyethylene (ULDPE) copolymers, ELITE™ enhanced polyethylene resins and ASPUN™ fiber grade resins. This is in addition to an increase of 100 Euro per metric ton announced on April 13, 2006, bringing the total increase to 150 Euro per metric ton.

Effective May 1, 2006, Dow Europe will also increase monthly polystyrene prices by 40 Euro per metric ton on all grades of its general purpose polystyrene resins (GPPS), high impact polystyrene resins (HIPS) and STYRON™ A-TECH™ advanced technology polystyrene resins. This is in addition to an increase of 60 Euro per metric ton announced on April 13, 2006, bringing the total increase to 100 Euro per metric ton.

Dow also announced on April 13, 2006, a price increase effective May 1, 2006, of 50 Euro per metric ton for all its polypropylene resins and INSPIRE™ Performance Polymers. This remains unchanged.

Dow Europe GmbH, Horgen, Switzerland