Feb. 25, 2011 - Resco is a privately owned company with headquarters in Pittsburgh, Pennsylvania. Resco has been known as a leader in the specialty or monolithic refractories industry. On Jan. 20, 2011, Resco announced 2011 products prices would be increased by 5-15%, parts of products would be increased by 20-25%, because of the increasing production costs of raw materials (such as bauxite, magnesite, graphite, dolomite,etc), freight and labor costs, and take effective on March 1st.
As far as raw materials, price of Chinese grade refractory bauxite has risen in late 2010 and will continue to increase due to the revised export quotas. Another factor that will increase the price of refractory grade bauxite is the rising price of oil, which is the fuel used to calcine this raw material. Fused magnesia used in various bricks has increased in price 21% from September 2010 or 3 months ago. And graphite has increased 83% since 2008 levels.
Vice President, Sales and Marketing of Resco, Richard W. Copp said in the announcement, "As the economic recession began in July 2008, Resco Products Inc. initiated a number of cost reduction programs to manage our company through this unprecedented downturn. After twenty-seven months, many of these temporary reductions are still in effect which, with other programs, have allowed Resco to hold pricing over the last 2 years. Unfortunately, we are now faced with many factors which are escalating costs beyond our ability to offset them. Resco can no longer absorb these cost increases and is announcing an across-the-board price increase effective with all shipments on March 1, 2011."
As far as raw materials, price of Chinese grade refractory bauxite has risen in late 2010 and will continue to increase due to the revised export quotas. Another factor that will increase the price of refractory grade bauxite is the rising price of oil, which is the fuel used to calcine this raw material. Fused magnesia used in various bricks has increased in price 21% from September 2010 or 3 months ago. And graphite has increased 83% since 2008 levels.
Vice President, Sales and Marketing of Resco, Richard W. Copp said in the announcement, "As the economic recession began in July 2008, Resco Products Inc. initiated a number of cost reduction programs to manage our company through this unprecedented downturn. After twenty-seven months, many of these temporary reductions are still in effect which, with other programs, have allowed Resco to hold pricing over the last 2 years. Unfortunately, we are now faced with many factors which are escalating costs beyond our ability to offset them. Resco can no longer absorb these cost increases and is announcing an across-the-board price increase effective with all shipments on March 1, 2011."
