As predicted, SI Geosolutions has received additional polypropylene resin price increases in January and February 2005. These raw material increases are due to continued instability in the global energy markets, increased resin and transportation costs, tight inventories and a strong export market. As a result, SI Geosolutions will implement a 12% price increase effective April 4, 2005 on all products.
The price for polypropylene resin, the raw material used to produce SI’s Geotex® geotextiles, has increased by 143% over the past 36 months.
According to Deron Austin, P.E., SI’s Director of Marketing, “There are four key factors impacting the continued escalation of polypropylene resin: (1) crude oil prices are close to $50 a barrel; (2) the demand in the US has increased 6.7% and exports are up 20.6%; (3) historically, there has been other, more profitable end-uses for propylene – the feedstock used to produce polypropylene resin; and (4) resin producers are currently operating at over 97% capacity.”
All open orders with SI Geosolutions must ship in full on or before April 4, 2005 for pricing to remain valid. Any project quotation requested for expected delivery after April 4, 2005 will be quoted at the new price levels.
“While we appreciate that increased costs present a challenge, we are very excited for 2005. The construction economy is strong and the demand for our products increases every day,” stated Hugh McClain, Vice President/General Manager of the company’s construction materials businesses.

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