Grace Catalysts Technologies Announces Price Increase
COLUMBIA, Md. -- March 13, 2013
Grace Catalysts Technologies, an operating segment of W. R. Grace & Co. (NYSE:
GRA) announced today pricing and market related actions in its Refining
Technologies business. Grace is discontinuing the rare earth surcharge pricing
mechanism it instituted in 2010 in response to the high volatility in the
costs of various rare earths used in Grace's FCC catalysts and additives. Rare
earth costs have stabilized in the past six months and the company believes
the surcharge mechanism is no longer appropriate. Grace will reset the base
price for FCC catalysts and additives to reflect current rare earth costs, and
then raise those base prices for FCC catalysts and additives 10 percent, as
contract terms allow.
The price increases are necessary due to significant investments made in the
businesses over the past few years and to support continued investment in R&D,
technical services, and planned capital investments.
Grace is a leading global supplier of catalysts; engineered and packaging
materials; and, specialty construction chemicals and building materials. The
company’s three industry-leading business segments—Grace Catalysts
Technologies, Grace Materials Technologies and Grace Construction
Products—provide innovative products, technologies and services that enhance
the quality of life. Grace employs approximately 6,300 people in over 40
countries and had 2012 net sales of $3.16 billion. More information about
Grace is available at www.grace.com.
This announcement contains forward-looking statements, that is, information
related to future, not past, events. Such statements generally include the
words “believes,” “plans,” “intends,” “targets,” “will,” “expects,”
“suggests,” “anticipates,” “outlook,” “continues” or similar expressions.
Forward-looking statements include, without limitation, all statements
regarding Grace’s Chapter 11 case; expected financial positions; results of
operations; cash flows; financing plans; business strategy; budgets; capital
and other expenditures; competitive positions; growth opportunities for
existing products; benefits from new technology and cost reduction
initiatives, plans and objectives; and markets for securities. For these
statements, Grace claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.
Like other businesses, Grace is subject to risks and uncertainties that could
cause its actual results to differ materially from its projections or that
could cause other forward-looking statements to prove incorrect. Factors that
could cause actual results to materially differ from those contained in the
forward-looking statements include, without limitation: developments affecting
Grace’s bankruptcy, propose plan of reorganization and settlements with
certain creditors, the cost and availability of raw materials (including rare
earth) and energy, developments affecting Grace’s underfunded and unfunded
pension obligations, risks related to foreign operations, especially in
emerging region, acquisitions and divestitures of assets and gains and losses
from dispositions or impairments, the effectiveness of its research and
development and growth investments, its legal and environmental proceedings,
costs of compliance with environmental regulation and those factors set forth
in Grace’s most recent Annual Report on Form 10-K, quarterly report on Form
10-Q and current reports on Form 8-K, which have been filed with the
Securities and Exchange Commission and are readily available on the Internet
at www.sec.gov. Reported results should not be considered as an indication of
future performance. Readers are cautioned not to place undue reliance on
Grace’s projections and forward-looking statements, which speak only as the
date thereof. Grace undertakes no obligation to publicly release any revision
to the projections and forward-looking statements contained in this
announcement, or to update them to reflect events or circumstances occurring
after the date of this announcement.
W. R. Grace & Co.
Rich Badmington, +1 410-531-4370
Mark Sutherland, +1 410-531-4590
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