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Lhoist North America Explains Price Increases


Lhoist North America (LNA) announced 2019 pricing changes in a letter to its customers. The letter stated:

"Lhoist North America sincerely appreciates having the opportunity to be your supplier and we want to thank you for your business. As we head into 2019, we are faced with significant cost increases from the markets that supply critical inputs to our plants. In particular, we are facing:

  • Energy – Coal (up 15 percent), Oil (up 30 percent), Natural Gas (up 6 percent).
  • Steel products (up to 40 percent depending on product).
  • Employee wages and benefits.
  • Regulatory requirements and the associated cost of compliance.

"The unprecedented headwinds facing the transportation industry, including regulatory pressures and a severe shortage of drivers that affects the cost of virtually everything we purchase as well as the products we ship via barge, rail and truck.

"As a result, we will adjust prices for lime, limestone and clay products by up to 11 percent in most cases effective Jan. 1, 2019, or as contracts allow so that we can continue to be a reliable supplier into the future.

"While we continue to make a favorable impact with our Continuous Improvement focus, we are only able to partially offset the cost pressures we are facing. As a result, we must increase prices in order to be able to remain a sustainable supplier to our customers in the long term. We appreciate your business and the confidence you have placed in us. Your LNA Sales Manager will contact you to discuss the specifics of your business."