NIAGARA FALLS, N.Y. — Niacet Corp. said it is raising the off list prices of calcium propionate and sodium propionate by 5c per lb, effective July 15 as contracts and agreements allow.
“In 2004 Niacet doubled its capacity for calcium propionate with the addition of our low-dust CrystalPro product,” said Michael Bowers, director of sales and marketing. “In the spring of 2011 Niacet announced plans to add an additional 5,000 tonnes of CrystalPro capacity. This expansion is presently under construction. Niacet is the only propionate producer to increase propionate capacity in the last five years.”
Mr. Bowers said that while Niacet understands recovering cost increases is difficult, “if adequate returns are not maintained, capital required for expansion of capacity to meet demand is difficult to justify.”
“In the last two years, pricing for calcium and sodium propionate has not kept up with cost increases, despite increased global demand for the mold inhibitors,” he said, adding that the price increases will allow the company to grow with customer demand.