Daikin Industries, Ltd. will raise the prices for all fluorochemical products by 20 ~ 30%. This goes into effect with those shipment made on or after March 1, 2011.
The price of natural resources continue to rise due to economic growth in emerging countries. Many of fluorochemical products are widely used for applications such as automotive parts and semiconductor manufacturing equipment. As a result, price of main raw materials used to manufacture fluorochemical products such as fluorospar (calcium fluoride), anhydrous hydrofluoric acid (made out of getting fluorspar and sulfuric acid reacted) are rising higher than our original estimation. In particular, market price of fluorospar in China, that has the highest output of fluorospar in the world, has so far risen more than 1.5 times compared with the price in early 2010, and is expected to rise even further in the future.
We have been diligently taking every possible measure in order to improve our efficiency with manufacturing, and to reduce fixed cost in order to make attempts to absorb rising raw material cost for fluorochemical products.
However, since it is increasingly difficult for us to absorb rising cost only by our own effort, we have decided to revise the selling price. Despite the difficult circumstances, we are fully committed to continue finding ways to reduce our total cost, improve quality, and ensure supply.