FOR IMMEDIATE RELEASE
Hexion Announces Surcharge on Rosin-Based Resin Products
COLUMBUS, Ohio – (May 3, 2010) - Due to significant volatility and unprecedented price increases in the worldwide rosin market this year, Hexion Specialty Chemicals will implement a surcharge on all rosin-based resins beginning June 1, 2010.
“While seasonal volatility in the gum rosin market is common, extreme volatility this year in both gum rosin and tall oil rosin has resulted in tight supply and higher costs. This situation is anticipated to continue for some time,” said Brad Crocker, Vice President, Ink & Adhesive Resins.
As one of the world's largest producers of rosin-based resins for the coatings, printing ink and adhesives industries, Hexion has invested to secure supply of critical rosin raw materials to meet customer needs. However, assuring adequate supplies of rosin at higher costs requires implementation of the rosin surcharge.
Beginning June 1, surcharges will be as noted for the following products:
- Setaprint™, Filtrez™, Eco-Rez™ and Pinerez™ rosin resins: $0.09 / Lb.
- Setaprint™, Eco-Rez™ rosin resin solutions: $0.05 / Lb.
- Snowtack™ and Burez™ tackifier dispersions: $0.05 / Lb.
About Hexion Specialty Chemicals, Inc.
Based in Columbus, Ohio, Hexion Specialty Chemicals is the global leader in thermoset resins. Hexion serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Additional information is available at www.hexion.com.
Forward Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements may be identified by the words “believe,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “will” or “intend” or similar expressions. Forward-looking statements reflect our current views about future events and are based on currently available financial, economic and competitive data and on our current business plans. Actual results could vary materially depending on risks and uncertainties that may affect our markets, services, prices and other factors as discussed in our 2009 Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission (SEC). Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: economic factors such as the current credit crises and economic downturn and their related impact on liquidity and the industry sectors we serve, or an interruption in the supply of or increased pricing of raw materials; competitive factors such as pricing actions by our competitors that could affect our operating margins; and regulatory factors such as changes in governmental regulations involving our products that lead to increased manufacturing costs and environmental and legal matters as described in our 2009 Annual Report on Form 10-K and in our other reports filed with the SEC.
VP, Public Affairs