Rhodia Polyamide announces price increase for Adipic Acid to counterbalance steep rise in energy (gas) and raw material costs (Benzene, Cyclohexane and Ammoniac)

Lyon, France, January 4, 2006 – Rhodia Polyamide has announced a price rise for Adipic Acid effective immediately. The new price reflects an increase of 130 € / MT in Europe and 150 USD / MT in Asia. Underlying this need for price adjustment is the unprecedented rise in the costs of energy, particularly gas, and raw materials such as Benzene, Cyclohexane and Ammoniac.

According to Gilles Grenier, vice-president, Rhodia Polyamide, “Rhodia Polyamide is among the industry’s pioneers in its approach to sustainable development. It proactively strives to reduce energy consumption while consistently maintaining the highest industry standards. However, given the economic climate, this effort alone is not sufficient to overcome the current, persistent, energy and transport cost pressures.” There is a need for margin recovery along with a stronger world demand in both Polyamide and Polyurethane markets.

This present decision falls in line with the pricing policy led by Rhodia for over a year, across all its activities, in order to compensate for the recurring rise in raw materials, energy and transport costs.

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