Solutia Raises Prices for Saflex(R) and Vanceva(R) PVB Films
ST. LOUIS, Aug. 17, 2005 -- Solutia Inc. (BULLETIN BOARD: SOLUQ) , the world's leading supplier of polyvinyl buytral (PVB) films for automotive, architectural and specialty laminated glazing applications, today announced it will increase the price of its Saflex(R) and Vanceva(R) brand PVB films by up to 10 percent globally, effective Oct. 1, 2005. The increase will apply for any shipment quantities not covered by existing agreements and for new supply contracts.
This price increase comes as a result of 10-30 percent upsurges in major raw material, energy and transportation costs. These costs are forecasted to remain at or above these high and unprecedented levels.
"To help mitigate rising raw material, energy and transportation costs, we continue to reduce other costs, increase manufacturing productivity and work with customers to reduce 'total system costs' for mutual benefits," said Mitch Pulwer, General Manager of Solutia's Laminated Glazing Interlayers (LGI) business. "In addition, by announcing the price increase at this time, we allow customers the opportunity to budget accordingly in their annual planning processes. This is an unusual time with the extraordinarily high price of oil, a barometer of the current issues our industry faces. Regardless, Solutia will continue to serve our customers with the highest quality products and the best customer service and support."
This price increase is set against a background of continuing growth in global demand for PVB films, which is driven by increased adoption of laminated glass in both automotive and architectural applications, especially in China. This increased demand is accelerating the need to invest in new capacity to assure reliable supply and to meet customers' future needs.
Solutia is the global leader in PVB interlayer innovation, quality and reliability. When laminated between layers of glass, Saflex PVB interlayers greatly enhance the performance characteristics of glass, providing benefits such as security, solar protection, sound attenuation and safety. In addition to Saflex, Solutia manufactures Vanceva high-performance interlayers, providing customers the world's most innovative portfolio of laminated glass interlayers.
For more information about these products, visit: http://www.saflex.com/ , http://www.vanceva.com/ and http://www.solutiaautomotive.com/ .
Forward-Looking Statements
This press release may contain forward-looking statements, which can be identified by the use of words such as "believes," "expects," "may," "will," "intends," "plans," "estimates" or "anticipates," or other comparable terminology, or by discussions of strategy, plans or intentions. These statements are based on management's current expectations and assumptions about the industries in which Solutia operates. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, those described in Solutia's most recent Annual Report on Form 10-K, under "Cautionary Statement About Forward-Looking Statements," Solutia's quarterly reports on Form 10-Q, and in filings with the U.S. Bankruptcy Court in connection with the Chapter 11 case of Solutia Inc. and 14 of its U.S. subsidiaries. These reports and filings can be accessed through the "Reorganization" and "Investors" sections of Solutia's website at http://www.solutia.com/ . Solutia disclaims any intent or obligation to update or revise any forward-looking statements in response to new information, unforeseen events, changed circumstances or any other occurrence.
NOTE TO EDITORS: Saflex and Vanceva are registered trademarks of Solutia Inc.