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SDK to Raise Price of Shorox TM Glass Polishing Material

Showa Denko K.K.
March 24, 2008

Showa Denko K.K. (SDK) has decided to increase the selling price of ShoroxTM cerium-oxide-based abrasives by ¥220 per kilogram in dry fine particles and ¥45 per kilogram in slurries, respectively, as from May shipments. ShoroxTM is used for high-precision polishing of glass substrates for LCDs and hard disk (HD) media.

While ShoroxTM abrasives are made from rare earths from China, the raw material cost has soared. This reflects the Chinese Government’s imposition of higher export tax in late 2006 and thereafter, reduced issuance of export permits and resultant sharp increases in fees, and shutdowns of several rare earth production plants in China due to environmental problems. Furthermore, prices of fuels and auxiliary materials increased, reflecting soaring oil prices.

Although SDK raised the ShoroxTM prices in October 2007, costs of raw materials, fuels and auxiliary materials have increased further. SDK has continued to make utmost efforts to absorb these cost increases through various rationalization programs. However, the company has concluded that it has no alternative but to again 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.

Demand for cerium-oxide-based abrasives has been substantially growing in recent years in response to increased production of large-sized LCD TVs. Rare earth raw material will be increasingly in tight supply due to growing domestic demand within China and the Chinese Government’s policy to impose stricter control on export.

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