Kimberly-Clark Health Care Announces Price Increase
Kimberly-Clark Health Care announces that it will increase the price of certain products within its portfolio most impacted by rapidly escalating costs of raw materials derived from oil.
In 24 months, market costs have almost tripled for high grade polypropylene polymer, which comprises the nonwoven materials used in many of Kimberly-Clark Health Cares single-use products. The cost of butadiene and acrylonitrile, the main raw materials used to produce nitrile synthetic gloves, have experienced similar cost increases during the same timeframe.
Although Kimberly-Clark Health Care planned for rising costs of raw materials, inflationary pressures have been beyond expectations and have outweighed a series of aggressive and sustained cost reduction measures implemented across the business. All areas of the business have been examined thoroughly, including a reduction in energy and resource use, a part of the company's ongoing sustainability program.
"By no means are we done looking at further offsets to reduce the price pressure for our customers and well continue to do so," says John Amat, vice president of global sales and marketing. "In the meantime, however, its important that we continue to deliver the same high quality products that our customers expect, and this means maintaining top quality raw materials."
The price increases will affect Kimberly-Clarks single-use medical products and are effective subject to notification periods.
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