Solutia Raises Nylon Fiber Prices; Implements Annual Increase Policy
``The unprecedented and sustained run-up in energy, raw materials and labor costs forces us to adjust nylon fiber prices upwards once again,'' said Jeff Wolff, vice president and general manager for Solutia's carpet business. ``Clearly margins have eroded to well below reinvestment economics, and that erosion must be reversed.''
Solutia's carpet business also has established an annual price increase policy in response to the marketplace. Barring extreme and unforeseen circumstances, nylon fiber price increases will be implemented once yearly, well in advance of the annual Surfaces flooring trade show.
``We have listened to the marketplace,'' Wolff said. ``Retailers and mills alike have a huge disdain for price increases made in piece-meal fashion, and virtually all have expressed the need for greater lead time to implement their own price increases successfully. They also want improved clarity around their costs before the Surfaces trade show.
``In response, we are instituting an annual price increase policy which will allow for improved planning prior to surfaces, and which will provide stability to the value chain throughout the year,'' Wolff said.