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Price Increase Notification Our customers have been advised as follows: We write to advise you of a price increase on all orders and quotations due for delivery or collection from 2nd January 2009. Market conditions in UK construction are currently very challenging and will only improve when liquidity returns to the financial markets and mortgage lending and confidence begin to rise. No one knows when this recovery will occur and we have therefore taken significant steps since the spring to reduce operational costs, capacity and overheads in line with market contraction. Energy prices have hit record high levels this year. Despite recent fluctuations, gas prices remain almost double those seen throughout 2007 and electricity prices are set to rise almost 50% in 2009. Gas and electricity prices have not reduced in line with recent reductions in the price of oil. We appreciate that many of you are experiencing similar market and cost pressures, and as detailed in our communications to you at the mid year we have maintained our resolve to absorb the massive increase in our input costs and delay any price increase to the beginning of 2009. Despite the dramatic impact upon Ibstock we wished to give our customers the maximum time to adjust to the market challenges we all face in 2009. We can no longer absorb the real escalation in costs we have experienced and must therefore pass on to our customers a proportion of these costs and advise you of a 14% price increase. We will continue to maintain every effort to reduce our cost base during the year ahead and hope the economy and particularly the private housing sector soon recover to the benefit of our industry. The increase will apply to all existing orders, quotations and pipeline projects with prices expiring on 31st December 2008 and will also be reflected in the published Price Guide which you will receive before the end of the year. Detailed price increase notifications will be posted to you before the end of November highlighting all your current orders affected. Please contact your Ibstock Sales Office, Territory or Account Manager or Sales Manager should you require any further information. |