Newsletter #353 (View other news stories)
TRELLEBORG announcement of price increase on industrial tires.
Thursday, 27 Mar 2008
 Bruno Belpietro |
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The continuous and relevant increase of the cost of raw materials, made even worse by the strong acceleration seen in the first quarter, forces Trelleborg Wheel Systems to react.
The Company will be obliged to announce price increases which will range from 8 to 10%, depending on country and local currencies. These increases will affect both the Replacement and Original Equipment Manufacturing channels in which Trelleborg is active.
Over the last few years, TRELLEBORG has minimized the impact of rising costs thanks to enhanced production efficiency and advanced compound knowledge. Despite these cost containment programs, the dramatic increase of material costs cannot be absorbed alone by TRELLEBORG. According to Bruno Belpietro, President of TRELLEBORG Industrial Tires, : "The escalation of raw material, energy and transport costs can no longer be absorbed significantly, as was the case in the past, through efficiency implementation and increased productivity."
"We do not believe that this constant growth is the result of seasonal factors or speculation, at least not in such a way that it can distort the underlying phenomenon; we see this as the outcome of a general and consolidated imbalance between market demand and the cost of Raw Materials and it will continue, at least, for all of 2008."
If TRELLEBORG's expectations are confirmed then further actions in the market will be necessary during the course of the year.
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