September 29, 2008
SDK to Raise Price of Shorox(TM) Glass Polishing Material
Tokyo, Sept 29, 2008 - (JCN Newswire) - Showa Denko K.K. (SDK) has decided to increase the selling price of Shorox(TM) cerium- oxide-based abrasives by 180 yen per kilogram in dry fine particles and 60 yen per kilogram in slurries, respectively, as from November shipments, and started discussions with customers regarding this price increase.
Shorox(TM), made from rare earths from China, is used for high- precision polishing of glass substrates for LCDs and hard disk (HD) media.Owing to the rise in the raw material cost, SDK raised the Shorox(TM) prices in May 2008. However, the cost of rare earths has continued to soar, due partly to the reduction in issuance of export permits by the Chinese Government. Under the circumstances, SDK has concluded that it has no alternative but to again ask customers to bear part of the increased costs in order to ensure stable supply of Shorox(TM) abrasives through stable procurement of raw materials.
Demand for cerium-oxide-based abrasives has been substantially growing in recent years in response to increased production of large- sized LCD TVs and glass-based HD media. Meanwhile, export volume of rare earths from China has been on the decline due to shutdowns of plants for environmental protection, growing domestic demand within China, and the Chinese Government's policy to impose stricter control on export. Thus, rare earth raw materials will be increasingly in tight supply and its cost could increase further.
About Showa Denko
Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods), electronic equipment (hard disks for computers) and inorganic materials (ceramics, carbons). The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications-use wafers. For more information, please visit www.sdk.co.jp .
Contact:For more information, contact:
Marketing Department 2, Ceramics Division (Phone: 81-3-5470-3412) IR & PR Office (Phone: 81-3-5470-3235)
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