The Industry Division of Sika Corp., Madison Heights, Mich., is raising prices
to adjust to the continued escalating costs of a number of raw materials required
to produce the company's glass adhesive and sealant products.
According to Ron Smith, director of marketing, glass companies will see a 5
to 10 percent increase in the adhesives they buy. "We're still looking at
the final numbers," he told USGNN. "We're the same as all the
other companies which are buying raw materials. The costs keep going up and we've
eaten as much as we can because it's a very competitive environment," he
explained. "But at this point, we felt we had to make this move.
Previous price adjustments have not recovered supplier cost hikes that are
expected to persist throughout the remainder of the year, the company stated in
announcing the move.
"It is no secret that petroleum-based raw materials, energy and transportation
costs continue to rise. We remain committed to offset some of these costs with
productivity and technology improvements, and by simply absorbing other costs.
However, we have to pass on some portion of the most recent increases in order
to maintain the performance integrity of our products and profitability targets
for our shareholders," said Bill Pringle, the division's senior vice president.