Kerneos, the leading producer of calcium aluminates, has announced a worldwide 8 to 10% price increase across all its entire product range with immediate effect or from the conclusion of existing supply contracts.
Jean-Marc Bianchi, CEO of Kerneos, commented: “The industrial manufacturing costs of our business have increased sharply and require us to continue investing heavily in new technology to meet the demands of our markets and to accommodate changes in the sources of our raw materials.”
Kerneos’ business is one of converting minerals such as bauxites and alumina into a range of reactive special materials - calcium aluminates. The availability of suitable raw materials has become increasingly difficult and their prices have increased dramatically in recent years. Kerneos’ principal energy source is oil and the Brent benchmark used to price this commodity remains well above its level of recent years.
Kerneos competes to acquire its raw materials with the rapidly expanding aluminium / alumina industries. As the BRICS countries develop they exert an increasing demand for alumina containing raw materials and the limited supply of these raw materials ensures that their prices remain high.
Kerneos has made, and will continue to make, significant capital investments to address the situation and secure high quality supply for its customers. Most notable was the commissioning in 2011 of a €4 million briquetting plant at Dunkirk.
Jean-Marc Bianchi further commented: “It is satisfying to be able to report that our industrial team has responded so well to these challenges without impacting our product quality or the reliability of our delivery, which remain our first priorities”.
Maintaining the highest quality supports the global adoption of our technology. Kerneos continues to grow strongly in its refractory market particularly in the BRICS countries and also benefits from a continuing adoption in the construction market of building techniques that use calcium aluminates.