FMC BioPolymer Announces a 7 Percent Price Increase
FMC BioPolymer has been able to offset a significant portion of higher costs through improved production efficiencies and sourcing methods, however, costs have risen to such a high level that FMC BioPolymer cannot continue to absorb them.
08/05/08 FMC BioPolymer announced a 7 percent price increase on its carrageenan and food/specialty grade microcrystalline cellulose products. The increase applies to pricing worldwide and will take effect on June 1, 2008, or as contracts allow. FMC BioPolymer is a division of FMC Corporation (NYSE: FMC).
Rising energy, freight and raw material costs, with no decreases in the foreseeable future, are major factors contributing to the price increases. FMC BioPolymer has been able to offset a significant portion of higher costs through improved production efficiencies and sourcing methods, however, costs have risen to such a high level that FMC BioPolymer cannot continue to absorb them.
“Innovative product offerings to the global marketplace, and greater operating efficiencies have allowed FMC to absorb a high percentage of the rising cost,” said Eric Beatty, Global Director of Marketing. “In today’s environment, we are focused on providing a stable source of consistently high quality products at a price that enables us to sustain the level of service our customers expect.”
FMC continues to reinvest into its operations to secure long-term supply and consistent functionality of its products for its customers. Reinvestments include expanding the microcrystalline cellulose plant in Newark, Delaware to meet growing demand and assure continued, reliable supply of high quality ingredients; securing access to quality raw materials through expanded sourcing practices; raising production standards to assure GMP, cGMP and environmentally responsible operations; and, expanding global technical capabilities to deliver better and faster technical support to food formulators.
“Our technical resources worldwide have been highly focused on developing product functionalities and applications that will support our customers’ efforts to create and market innovative products,” said Mike Sestrick, Global Director of Technology. “FMC’s commitment to access raw materials that offer consistent functionality and innovative solutions can only be assured with continued reinvestment in the business.”
Carrageenan and microcrystalline cellulose are highly functional ingredients that are widely used throughout the world in the food and beverage industries to provide texture, structure and stability to dairy systems, desserts, beverages, dressings & sauces, meats and other processed foods.
All FMC plants are ISO 9002 certified, demonstrating the company’s commitment to providing an assured supply of the highest quality products and delivering innovative and cost effective solutions to formulators’ problems.
