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ABB AND POWER PARTNERS TO IMPLEMENT ADDITIONAL PRICE INCREASE
ON NEW QUOTATIONS DUE TO HIGHER MATERIAL COSTS
June 25, 2004 -- ABB Inc. announced today an immediate price increase of 2% on all new quotations for liquid filled distribution
transformers manufactured in Jefferson City, MO and Athens, GA (Power Partners). This is in addition to the 5% increase that was
announced on February 1st, 2004, for a total of 7% for the year to date.
ABB and Power Partners will continue to deliver the greatest value to our customers to ensure 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 and electrical steel). The average increases we have seen in these
commodities are as follows:
- Carbon Steel - increased 130% over 2003 baseline
- Aluminum - increased 20% over 2003 baseline
- Copper - increased 55% over 2003 baseline
- Oil - increased 30% over 2003 baseline
- Electrical Steel increased 10% over 2003 baseline
The net effect of all of these increases is, on average, a net 25% increase in total material cost. 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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