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Dow Raises Prices Up To 20%

May 29, 2008

Moves attributed to major U.S. energy crisis.

Citing a major U.S. energy crisis, the country’s biggest U.S. chemical manufacturer Dow has announced it will increase prices on all of its products by up to 20%. The price increases will take effect on June 1 for all its chemicals and plastics, used in thousands of products from paints and adhesives to insecticides to disposable baby diapers. The Midland, MI company said its oil- and gas-related costs in the first quarter were up 42% from a year earlier.

The move is expected to lead to mass price increases across the economy which is already under inflationary pressure. Last week, Kimberly-Clark announced it would raise prices in in consumer products business including Huggies diapers this summer.



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