Grace Catalysts Technologies Announces Price Increase
COLUMBIA, Md.--(BUSINESS WIRE)-- Grace Catalysts Technologies, an operating segment of W. R. Grace & Co. (NYSE: GRA) announced today pricing and market related actions in its Refining Technologies business. Grace is discontinuing the rare earth surcharge pricing mechanism it instituted in 2010 in response to the high volatility in the costs of various rare earths used in Grace's FCC (FCIC.PK) catalysts and additives. Rare earth costs have stabilized in the past six months and the company believes the surcharge mechanism is no longer appropriate. Grace will reset the base price for FCC catalysts and additives to reflect current rare earth costs, and then raise those base prices for FCC catalysts and additives 10 percent, as contract terms allow.
The price increases are necessary due to significant investments made in the businesses over the past few years and to support continued investment in R&D, technical services, and planned capital investments.
Grace is a leading global supplier of catalysts; engineered and packaging materials; and, specialty construction chemicals and building materials. The companys three industry-leading business segmentsGrace Catalysts Technologies, Grace Materials Technologies and Grace Construction Productsprovide innovative products, technologies and services that enhance the quality of life. Grace employs approximately 6,300 people in over 40 countries and had 2012 net sales of $3.16 billion. More information about Grace is available at www.grace.com.
This announcement contains forward-looking statements, that is, information related to future, not past, events. Such statements generally include the words believes, plans, intends, targets, will, expects, suggests, anticipates, outlook, continues or similar expressions. Forward-looking statements include, without limitation, all statements regarding Graces Chapter 11 case; expected financial positions; results of operations; cash flows; financing plans; business strategy; budgets; capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and cost reduction initiatives, plans and objectives; and markets for securities. For these statements, Grace claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Like other businesses, Grace is subject to risks and uncertainties that could cause its actual results to differ materially from its projections or that could cause other forward-looking statements to prove incorrect. Factors that could cause actual results to materially differ from those contained in the forward-looking statements include, without limitation: developments affecting Graces bankruptcy, propose plan of reorganization and settlements with certain creditors, the cost and availability of raw materials (including rare earth) and energy, developments affecting Graces underfunded and unfunded pension obligations, risks related to foreign operations, especially in emerging region, acquisitions and divestitures of assets and gains and losses from dispositions or impairments, the effectiveness of its research and development and growth investments, its legal and environmental proceedings, costs of compliance with environmental regulation and those factors set forth in Graces most recent Annual Report on Form 10-K, quarterly report on Form 10-Q and current reports on Form 8-K, which have been filed with the Securities and Exchange Commission and are readily available on the Internet at www.sec.gov. Reported results should not be considered as an indication of future performance. Readers are cautioned not to place undue reliance on Graces projections and forward-looking statements, which speak only as the date thereof. Grace undertakes no obligation to publicly release any revision to the projections and forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.
W. R. Grace & Co.
Rich Badmington, +1 410-531-4370
Mark Sutherland, +1 410-531-4590
Source: W. R. Grace & Co.Copyright Business Wire 2013