Specialty chemicals and advanced materials company,
Rockwood Holdings, Inc.
), recently announced that it is increasing the price of its
synthetic iron oxide pigment products globally. These pigment
products, sold through the company's Color Pigments & Services
division, are used in construction, coatings, plastics and
Rockwood has decided to impose a $120 per metric ton price rise,
effective August 1, applicable to all synthetic iron oxide pigment
products. The company's sales teams will individually discuss the
price increment with customers.
The increase in the price is expected to generate more revenues
for Rockwood. This should aid the company's infrastructure upgrade
programs, as well as deal with regulatory requirements in some
regions. Further, it would also support the research and
development activities taken up by the company.
Rockwood's Color Pigments & Services Division is one of the
largest suppliers of colored pigments in the world. It has
facilities across the U.S., UK, France, Italy, Germany, Australia
and China, along with sales offices in Singapore and Hong Kong.
Hence, the global increase in prices will affect a large number of
customers, and may increase the company's top line in the
Rockwood's recent initiatives require the company to generate
better cash flow, and the price hike is a step in that direction.
The company initiated a dividend program last month, under which it
will be paying a forward annualized dividend of $1.40 to
shareholders. Furthermore, the company has agreed to purchase the
titanium dioxide production assets and inventory of crenox GmbH
through its joint venture with Kemira Oyj, a move which is expected
to further strengthen its titanium dioxide pigments business.
Rockwood, which competes with
), currently holds a Zacks #3 Rank, reflecting a short-term (1 to 3
months) Hold rating.
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