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SDK to Raise Price of Ceria-based Polishing Agent

September 6, 2005

Showa Denko K.K. (SDK) will raise prices of ceria-based polishing agent by ¥60 per kilogram for dry powder type (trade name: SHOROX) and by ¥12 per kilogram for slurry type (SHOROX V) as from October shipments. The product is used for the polishing of liquid crystal display (LCD) glass and hard disk (HD) media glass-substrate.
Demand is growing for LCDs used in thin TV sets and notebook PCs and for glass-substrate HD media. To ensure good performance of these electronic devices, precision polishing of the glass surface is critical. Thus, shipment volumes of SHOROX are increasing due to the product’s high glass-polishing efficiency.
Meanwhile, the cost of rare earth oxides from China—the main raw material for SHOROX—has increased more than 20% from the latter half of 2004. The cost increase has resulted from Chinese Government’s termination of refund (13%) of value-added tax for exports, the rise in the price of rare earth concentrate (25%) and auxiliary materials (40%), and the shift to a basket system of the Chinese currency. While SDK has worked hard to absorb cost increases through rationalization efforts, the company has concluded that it has no alternative but to ask customers to bear part of the burden in order to stabilize its procurement of raw materials and supply of SHOROX products to customers.

For more information, contact:
Marketing Department II, Ceramics Division (Phone: 81-45-453-5125)