Columbian Announces Price Increase On Asian Rubber Carbon Black Grades

Columbian Chemicals Company today announced a 15 percent price increase for grades of rubber carbon black sold in Asia, effective April 1. The increase was precipitated by continued significant cost increases for raw materials and the need to remain a healthy business partner for customers that depend on Columbian`s value-added products and services.

“Columbian continues to work on cost reductions and productivity enhancements, and to a certain degree this has minimized the need to pass along rising raw material costs,” said James P. Berresse, President of Columbian Chemicals. “Unfortunately, raw material costs have escalated to the point that we no longer can absorb these increases in their entirety -- the marketplace must share this burden.”

Feedstock costs, which already were near historic highs at the end of 2002, have continued to rise during the first quarter of 2003 as reaction to the ongoing oil workers` strike in Venezuela and speculation over a possible war with Iraq.

“Our goal is to be a preferred business partner and an active participant contributing to the success of our customers,” Mr. Berresse said. “Doing so, however, requires that Columbian invest in new technologies, bring new products and services to market, and maintain and upgrade our capital infrastructure so we are in a position to deliver the value-added products and services our customers need to be successful.”

Dietmar Voss, Senior Vice President of Worldwide Sales and Marketing, said that Columbian gave serious consideration to the possible ramifications of a price increase. “But in the end, we kept coming back to the fact that healthy customers need healthy suppliers -- and vice versa.

“This is a specialty chemicals business -- our customers need differentiated products and services,” Mr. Voss continued. “Going forward, we want to partner with our customers to better understand their business and provide a value package that meets their specific needs and helps to drive our customers` profitability.”

COLUMBIAN INCREASES RUBBER CARBON BLACK PRICES IN ASIA

As an example, he pointed to the growing need among Asian rubber-goods manufacturers to enhance the quality of their products so they are more competitive in a global marketplace. “By understanding our customers` needs, we can help our partners develop products that will differentiate them from their competitors. But, obviously, we have to remain a viable business to make that happen,” Mr. Voss said.

Columbian Chemicals is one of the world`s leading producers of carbon black – an engineered material that improves the strength, durability and overall performance of a range of products including tires and other mechanical rubber goods, as well as inks, paints, plastics and coatings.

Based in Marietta, Georgia, Columbian Chemicals is a subsidiary of Phelps Dodge Corporation, the world`s second-largest copper company. Columbian Chemicals owns and operates 12 carbon black manufacturing facilities in Brazil, Canada, England, Germany, Hungary, Italy, Korea, Spain and the United States.

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