Virtually all major variable costs have increased substantially during the past year. To counteract these developments, Norit has made maximal efforts to reduce the fixed costs, i.e. by increasing the productivity per employee. We have done what we could through manpower reductions and other efficiencies. However, by far this is not sufficient to compensate for the variable cost increases which we’ve been encountering.
To assure continuity of our services, quality and support, Norit has been forced to implement an overall 10 % price increase program.

Energy
The price of natural gas – being the main fuel used in our plants – has been escalating over the past years. The year 2005 has brought a further 9 % increase.

Raw materials
The alternative value of our raw materials is related to the price of energy carriers. The trend for coal, being an important raw material for Norit granular carbon grades, shows an increase of +24 % in 2005 versus 2004.

Shipping
The average overall price per km for road transport is going up by 11 % in 2005 versus 2004. Further, during 2005 shipping companies have applied security and energy related surcharges of about 10 % on sea transports.

Chemicals
The price trend over the past year is an unprecedented increase for the main chemicals used in our Activated Carbon production. Compared to 2004:
Phosphoric acid + 9 %
Hydrochloric acid +15%
Caustic soda + 27 %