DAK Americas Addresses Escalating Energy Costs

Charlotte-based DAK Americas LLC — a producer of terephthalic acid monomers, polyethylene terephthalate resins and polyester staple fibers — has notified customers that it will implement “ unprecedented” measures to secure its future viability.

In spite of ongoing efforts to reduce costs including unnecessary energy expenses, DAK Americas is taking further action on account of exceptional energy and major raw material costs in addition to their impact on conversion and distribution costs.

“DAK Americas is at a loss to project the future evolution of energy costs and its subsequent impact on materials and services,” said Hector Camberos, the company’s president and CEO. “Up until this point, our industry has acted on the assumption that these escalating costs were temporary and reducing margins would overcome the immediate impact. It is now clear that we have to take decisive action to address these escalations as they show no signs of stopping.”

DAK sales representatives will contact the company’s customers to outline the details of their actions.

July 1, 2008