Price increase of our Alcamizer® products
Veendam, October 8, 2013
In the last couple of years the average price of our Alcamizer® products, that are used as co-stabiliser in PVC, has eroded with approx 10%. In the same period our production costs have increase with a similar percentage. As a result, the margins for this business have disappeared completely.
In order to safeguard the continuity of our company, to ensure that we will remain a reliable and innovative partner for our customers and to guarantee an undisturbed supply also in the future, for next year and after this trend has to be stopped. As a consequence, for 2014 we will seek for a price increase of 5% when contracts allow.
Kisuma Chemicals BV is the European affiliate of Kyowa Chemical Industry Co., Ltd. from Japan. Since 1999 the company operates a plant in the Netherlands that is serving the polymer producing and processing industry with magnesium based heat stabilizing, halogen scavenging and flame retardant products under the brand names Alcamizer®, DHT- 4A® and Kisuma® This plant is the world's largest production site of synthetic hydrotalcites (a.k.a. layered double hydroxides). Approximately one third of its products are shipped to overseas destinations, the rest is for local (means European) use. Main end applications are found in the construction and the automotive industry, in wire and cable, profiles, sheets, pipes and fittings.
After the start-up of the company in 1999 approx Euro 80 mln has been invested to triple its original capacity. In the period 2000 – 2007 Kisuma was one of the fastest growing companies in the North of the Netherlands, to reach a turnover of Euro 40 mln in 2007. Due to the international crisis, in the period 2008 – 2009 the turnover dropped with approx 30%. Since 2010, volume-wise we are back on the pre-crisis level. Currently Kisuma employs approx. 80 people and the outlook for the immediate future is moderately positive.
Kyowa Chemical Industry Co., Ltd is an independent worldwide leading manufacturer and supplier of magnesium and aluminum fine chemicals, mainly for pharmaceutical and plastics applications. Since some time Kyowa is producing and marketing also magnesium based OTC medicines, specifically for the Japanese domestic market. Marketing and sales of their industrial products outside Asia Pacific is coordinated from Kisuma's head office in Veendam, the Netherlands.
Further info on Kisuma and Kyowa's company activities may be found at www.kisuma.com