English Top>News Releases>2007>SDK to Raise Price of ShoroxTM Glass Polishing Material

News Releases

SDK to Raise Price of ShoroxTM Glass Polishing Material

Showa Denko K.K.
September 10, 2007

Showa Denko K.K. (SDK) has decided to increase the selling price of ShoroxTM cerium-oxide-based abrasives by 150 yen per kilogram (in dry fine particles) as from October shipments. ShoroxTM is used for high-precision polishing of glass substrates for LCDs and hard disk (HD) media.

Demand for these glass substrates grew substantially in 2005 and 2006 due to increased production of large-sized LCD TVs, and demand is expected to continue growing in and after 2007. To ensure high quality of the final products—LCD TVs and glass-substrate HD media—, it is essential to use materials that provide high-precision polishing of glass surface.

While ShoroxTM abrasives are made from rare earth oxides from China, the raw material cost has soared. This reflects the Chinese Government’s imposition of export tax since November 2006, reduced issuance of export permits and resultant sharp rise in fees, and shutdowns of several rare earth oxide production plants in China.

SDK has so far made utmost efforts to absorb the raw material cost increases through various cost-reduction measures, including rationalization programs. However, the company has concluded that it has no alternative but to ask customers to bear part of the increased costs in order to ensure stable supply of ShoroxTM abrasives through stable procurement of raw materials. SDK has started discussions with customers regarding this price increase.

For more information, contact:
Marketing Department 2, Ceramics Division (Phone: 81-45-453-5125)
IR & PR Office (Phone: 81-3-5470-3235)