Dow Chemical to Raise Prices 25% as Energy Costs Gain

Dow Chemical Co. will raise prices as much as 25 percent in July, the largest increase in company history and the second in two months, to recoup surging energy and raw-material costs.

The biggest U.S. chemical maker also will add freight surcharges of $300 per truck shipment and $600 per rail shipment as of Aug. 1, Midland, Michigan-based Dow said today in a statement. Factories that make Styrofoam, paint ingredients and auto plastics will be shut because of weak demand and rising costs, Dow said.

Chief Executive Officer Andrew Liveris raised prices last month for June by 20 percent because of surging costs for petroleum-based raw materials and energy. The additional increases were needed because of a ``relentless'' rise in the cost of oil-derived naphtha and ethane, a component of natural gas, Dow said.

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- Posted: 2008-06-24 10:14:18

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