PURAC to Increase Ingredient Prices

This increase is deemed necessary in order to offset the high volatility and increase in the costs of many key components in the manufacturing of lactic acid, lactic acid derivatives and gluconates.

16/07/08 PURAC has announced that with immediate effect, all prices of its products will be increased by 0.20 - 0.30 EURO per kilogram globally, depending on their composition and exposure to the increased costs of various auxiliary raw materials, energy and feedstock (mainly corn). The new sales prices will be effective immediately or insofar as sales contracts allow. PURAC, which is a CSM subsidiary is the worldwide market leader in lactic acid and lactates and a leading supplier in gluconates.

This increase is deemed necessary in order to offset the high volatility and increase in the costs of many key components in the manufacturing of lactic acid, lactic acid derivatives and gluconates. In recent months, these raw materials have experienced up to triple digit cost percentage increases.

PURAC said it is undertaking various actions in efforts to contain the different increases as much as possible and is working in close cooperation with suppliers to ensure availability of raw materials in the current tight global supply situation.

Yesterday it emerged that CSM will sell the gluconates production plant of its subsidiary PURAC in Ter Apelkanaal to AVEBE.