IHS Chemical Week

Economics :: Prices

R&H Surcharge Expected to Recover Costs

8:15 AM MDT | May 19, 2008 | Kate Phillips in Philadelphia

Rohm and Haas (R&H) made a “bold move” when it recently implemented an index-based surcharge on products made by its specialty materials businesses, Raj Gupta, chairman and CEO, told shareholders at R&H’s annual meeting, held last week in Philadelphia. The surcharge, if successful, is expected to recover most of its energy, freight, and raw material costs, Gupta says. R&H developed an index based on its crude oil, natural gas, and 11 major raw material purchases (CW, May 5, p. 16). The surcharge will rise or fall each month to...

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