DSM Composite Resins, Europe's largest unsaturated polyester resin producer, is increasing the prices of all its unsaturated polyester resin and gelcoat products for shipments on or after September 1st, 2007. All unsaturated polyester resin and gelcoat products will be increased with 100 Euro/ton.

Gertjan de Koning, Business Director DSM Composite Resins Europe, states that raw material prices will increase significantly more than expected in Q4 2007, to a large extent caused by the extreme tightness in supply from the main raw materials suppliers. With limited additional capacity coming on stream in the near future, combined with a strong growing demand in UPR, even minor disruptions cause major disturbance in this fine balance. Alternative supply then becomes costly. Because of its excellent long-term relationship with raw material suppliers, DSM has been able so far to fulfill all of its increased need for feedstock. In addition record prices on crude oil, feedstock to our suppliers, although temporary offset by favourable Euro/Dollar exchange rate are expected to continue rising both short and long term.

DSM Composite Resins would like to confirm to our loyal customers that we remain fully committed to the composite industry. "As I stated previously, it is important our customers understand the gravity of the current situation", continues de Koning, "these market conditions are a continuing trend, reinforced by the fast growing composites industry, even outpacing our planned production capacity increases, leading to additional tightness in supply." We are advising our customers to contact their account manager for further information.