Lhoist North America (LNA) announced a price increase for mineral products effective Jan. 1, 2015. Subject to existing contractual commitments, all products shipped after Dec. 31, 2014, will be billed at the new price regardless of the date the order is placed.
LHA manufactures a wide variety of products that are each subject to varying cost escalations. Therefore, “we are increasing price for each product line separately to better reflect cost escalations and reduce the impact to our customers,” the company said.
Several items are negatively affecting costs, the company reported:
- The costs of raw materials, transportation and people are increasing as the economy recovers.
- New or increasing regulatory pressures are impacting businesses in a variety of ways:
- Increasing governmental permitting requirements for the development of new reserves and plants are more difficult, costly, and take longer.
- New environmental regulations are requiring new investments in baghouses (dust control), air emission controls, waste disposal and other control measures.
To meet the demand and regulations, LNA said it continues to invest substantial capital in order to keep operating efficiencies high and manufacturing costs controlled while providing its customers assurance of supply. “We are doing everything possible to improve our business while minimizing the impact of outside cost drivers,” the company said.
In light of all these factors, LNA will be implementing a 4 to 8.5 percent increase in list prices for mineral products on Jan. 1, 2015, as existing contractual commitments allow. LNA will also be implementing a 5 to 15 percent increase in list prices for lime products on Jan. 1, 2015.
“We do not take this decision lightly, but we believe it necessary to continue to be able to provide our customers with high quality products and services. Your LNA sales manager will be contacting you shortly with the details of the specific increase on the products that you purchase,” the company posted on its website.
LNA employs approximately 1,500 people at more than 50 facilities throughout the United States and Canada.