York, PA (9/17/04) - In all our efforts to contain costs, raw material prices have continued to increase for stainless steel and copper. Material surcharges increased from 15¢ to 45¢ per pound in 2003, and recently 99¢ per pound for 316/316L Stainless Steel. This has nearly doubled the price of stainless steel in the last two years and copper costs are also rising significantly.
As you know, 85% to 90% of our product composition is stainless steel with remainder in copper. In order to maintain our base prices to our customers, GEA FlatPlate must take the necessary steps to adjust prices accordingly.
Effective immediately, our material surcharge has been amended for OEM and Distributor prices to increase from 2.9% to 3.8% over our product range. This update will better reflect rising costs and surcharges associated with raw materials. The new material surcharges and prices will apply to all orders received on or after September 21, 2004, until raw material prices decline.
Surcharge costs are published approximately 30-45 days in advance from our steel mills. Therefore, once we receive monthly updates we will post the results on our website at www.GEA FlatPlate.com/surcharge.
It is our hope that when material prices stabilize to a tolerable level, GEA FlatPlate will be able to eliminate or drastically reduce the Material Surcharge. Until then, all of our employees appreciate your support and efforts in purchasing GEA FlatPlate's U.S. manufactured products.
GEA FlatPlate
100 GEA Drive
York, PA 17402
717-268-6200
