Huntsman Corp., the chemical maker that agreed to be acquired by Apollo Management LP, plans to raise global prices as much as 25 percent because of surging energy and raw-material costs.
An energy surcharge also will be added to some products, according to a statement from Huntsman, which is run from The Woodlands, Texas, and Salt Lake City. Costs for hundreds of raw materials used to make everything from paint pigment to polyurethane foam have climbed 10 percent to 100 percent in two months, Chief Executive Officer Peter Huntsman said.
Huntsman is joining an industry effort to raise prices after crude-oil futures more than doubled in the past year and U.S. natural gas jumped 51 percent. The biggest cost increases are for materials also used on farms, such as acids used in fertilizer and titanium dioxide, a white pigment that Huntsman produces, the CEO said.
"We are the shock absorbers between raw-material suppliers and the end-use consumers, and that has to end," Huntsman said in a telephone interview.
The company's raw-material and energy costs will rise as much as $800 million this year from $7.6 billion in 2007 if costs remain at the current level, he said. Benzene, propylene and butane are among the company's largest inputs, he said.