Polymer Group, Inc. will begin implementing additional price increases on a global basis in response to increases in raw material costs that continue to reach unprecedented levels.
Price increases of petroleum-based products from suppliers to PGI have risen in excess of 20% since March of 2008 and are expected to continue to increase significantly in the coming months, primarily driven by the continued high cost of oil. Additionally, certain suppliers have declared force majeure and are increasing prices as a result of higher energy and transportation costs. The raw material most affected by these actions is polypropylene, but the costs of all petroleum-based raw materials are higher.
As such, the company will increase prices of its products to customers, the amount of which will vary based on product composition. Additional increases are expected based on current raw material market projections.