Calgon Carbon Corporation Announces Global Price Increase
PITTSBURGH, PA – 10/07/2021
Increase begins 10-15-21, where contracts permit
10-25% increase expected
Calgon Carbon Corporation, a wholly owned subsidiary of Kuraray Co., Ltd. (TYO: 3405) (Kuraray), today announced a global price increase due to a continued and prolonged escalation in costs for raw materials, energy, transportation, and labor. The price increase is effective October 15, 2021, where contracts permit, and will be imposed on all activated carbon products and related equipment. The increase will be 10 to 25% or more, depending on the specific product, raw material type, and services provided.
The continuing impact of the global pandemic has impacted costs and availability of a broad spectrum of materials and services. Cost increases for bituminous coal, coconut char, and wood, the primary raw materials used for producing activated carbon, have been significant. Energy costs, including natural gas are up considerably in the Company’s primary manufacturing countries. The cost of steel and other components used in large vessel fabrication continues to increase. The entire global supply chain has seen operating and transportation cost escalations, and the challenges related to container availability is expected to continue.
“While Calgon Carbon has some contractual protection from cost escalation, we are in unprecedented times where our spending for raw materials (mainly coal, coconut, wood, and steel) has increased significantly. Wages and salaries are up sharply for all hiring sectors. Energy costs, including both electricity and natural gas, have been trending upward, and regional shortages are increasing pricing pressures. Transportation expense, exclusive of the cost of fuel, has shown substantial increases that have yet to show signs of flattening,” said Jim Coccagno, Executive Vice President and Chief Commercial Officer for Calgon Carbon Corporation. “While we had hoped to avoid a substantial price increase, if we are to ensure to our customers that we can reliably supply the highest quality activated carbon products and services, we cannot continue to absorb the rise in costs.”
About Calgon Carbon Corporation
Calgon Carbon, a wholly owned subsidiary of Kuraray Co., Ltd. (TYO: 3405) (Kuraray), is a global leader in the manufacture and/or distribution of innovative coal-, wood- and coconut-based activated carbon products – in granular, powdered, pelletized and cloth form – to meet the most challenging purification demands of customers throughout the world.
Complemented by world-class activated carbon equipment systems and service capabilities, as well as diatomaceous earth and perlites, Calgon Carbon provides purification solutions for more than 700 distinct applications, including drinking water, wastewater, pollution abatement, and a variety of industrial and commercial manufacturing processes.
Headquartered in Pittsburgh, Pennsylvania, Calgon Carbon employs approximately 1,700 people and operates 17 manufacturing, reactivation, innovation and equipment fabrication facilities in the U.S., Asia, and in Europe, where Calgon Carbon is known as Chemviron.
Calgon Carbon was acquired by Kuraray in March of 2018. With complementary products and services, the combined organization will continue to focus on providing the highest quality and most innovative activated carbon and filtration media products, equipment, and services to meet customer needs anywhere in the world. For more information, visit calgoncarbon.com.