Already starting from the last months of 2012, the pressure from raw materials price increase has become more and more evident strongly impacting on purchase costs and consequently on the industry sustainability.

PET chips prices have been on the move since the summer of 2012 pushed upwards by rising production costs, derived by low production capacity exploitations, and by the continuous increase of PX (parxylene) and MEG (monoethylene glycol).

The crisis has impacted the industry, not only depressing the construction activity, but also reducing consumer's spending and therefore creating shortage of waste material such as post consumer bottles, which for Freudenberg Politex represent a crucial raw material.

Not to forget the utilities tariffs, constantly increasing despite the continuous negotiations and the long term investments pursued by the Group during last years in order to decrease the dependence from external suppliers (i.e. cogeneration).

Freudenberg Politex has been putting in place every effort to mitigate the effect of these increases through productivity improvements and efficiencies at all manufacturing facilities, but based on current market conditions this is not sufficient.

Though understanding the difficulties of customers, who are facing the same difficult market situation, Freudenberg Politex is obliged to pass a portion of this cost revising the sale prices of its products.

Unfortunately this scenario forces the Group to apply a sale prices increase in the range from 5% to 7% for the different products, from March 15th 2013.