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ABB TO INCREASE PRICES DUE TO HIGHER
MATERIAL COSTS
PRICE INCREASE WILL APPLY TO POWER PARTNERS PRODUCTS
ATHENS, GA, February 3, 2004 - ABB Inc. announced an immediate price increase of five percent on all new quotations for liquid filled and dry type distribution transformers manufactured in Jefferson City, MO, South Boston, VA, Bland, VA, and Athens, GA, where Power Partners is located. In addition, the same five percent price increase will apply to all new quotations for instrument transformers manufactured in Pinetops, NC.
All current contracts will be evaluated to determine the price adjustments that will be necessary.
ABB and Power Partners will continue to deliver the greatest value to our customers to ensure their competitiveness in these ever changing market conditions. However, the companies must respond to the unprecedented increases in the costs of the major commodity materials for transformers (carbon steel, aluminum, copper, oil). The average increases are as follows:
- Carbon Steel - increased 45 percent over 2003 baseline
- Aluminum - increased 18 percent over 2003 baseline
- Copper - increased 37 percent over 2003 baseline
- Oil - increased 11 percent over 2003 baseline
The net effect of these increases averages 10% increase in material cost per transformer.
These increases are common across all domestic transformer operations and are being driven by the global commodity markets.
Please contact your local ABB representative with any questions.
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