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Information letter regarding price increase at Nexans Germany
Dear Sir or Madam,
After we have already faced a significant cost increase for most raw materials since the beginning of 2007, this situation has changed for the worse again during the first half of 2008. For the coming months we have to expect two-digit price increases for most plastics.
Main driver in this situation is the oil but also materials such as steel, zinc etc. show the same tendency. Rising costs of labor due to the high inflation rate and increasing fees such as highway toll add to this situation.
The share of plastics within the entire costs of our products varies between 15 % and 50 % and makes it impossible for us to compensate this evolution by internal rationalization activities completely like we succeeded to do for so many months.
Due to this complex situation we are forced to increase our prices for various cable types by approx. 5 % up to 15 %. You will shortly receive details from your dedicated sales partner.
We kindly ask for your understanding for this unavoidable step and hope to keep our trustful and cooperative relationship.
Sincerely yours
Nexans Deutschland Industries GmbH & Co. KG
- Executive Board -
Dr. Francis Krähenbühl Christof Barklage
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