SOUTH GATE, Calif. (June 8, 2004) — Arnco will institute a raw material surcharge of 3 cents per pound for all flatproofing polymers to offset rising costs of oil and petrochemicals.
The surcharge takes effect July 1, the company said. South Gate-based Arnco supplies flatproofing products including polyurethane fill for tires used in construction, mining, ground support, material handling, roofing and lawn and garden industries. The surcharge applies to all of the company's products.
“We know that the marketplace for tires and related services is very competitive, but we believe that our customers will understand that in the current economic conditions, price increases for petrochemical-related materials are completely justified and unavoidable,” said Larry Carapellotti, president of Arnco.
He added Arnco will not try to recover indirect costs, which also have been rising, such as natural gas, electricity, health care or insurance.