DOW CHEMICAL HIKES PRICES

Abstract

DOW CHEMICAL is raising prices for all of its products in response to escalating energy costs. Dow, the largest U.S. chemical producer, says prices for some products could increase by as much as 20%, depending on how hard their production has been hit by rising feedstock, energy, and transportation costs. CEO Andrew N. Liveris says his company’s feedstock and energy bill increased by 42% in the first quarter of 2008 compared with the same quarter last year. At current rates, Liveris adds, Dow’s combined energy and feedstock costs could hit $32 billion this year, quadruple what they were in 2002. According to Liveris, Dow’s unusual action stems from the U.S. government’s failure to develop a comprehensive energy policy—a failure that he claims has undermined the competitiveness of U.S. manufacturers. “For years, Washington has failed to address the issue of rising energy costs, and as a result, the country now faces a true energy crisis, ...