Materials

Dow Chemical Company, which provides plastic materials and coatings to the packaging sector, raised the price of its products by up to 20% on 1 June to combat soaring energy, feedstock and transport costs.

The company also said it would review all terms to all customers.

Dow said that it spent $8bn (£4bn) on energy and hydrocarbon-based feedstock costs in 2002, but at the current rate those costs would climb to $32bn (£16.2bn) this year.

Dow chairman and chief executive Andrew Liveris said: "Our first-quarter feedstock and energy bill leapt a staggering 42% year-on-year, and that trajectory has continued, with the cost of oil and natural gas climbing even higher.

"The new level of hydrocarbons and energy costs is putting a strain on the entire value chain."

He said the company also continued its internal cost-control plan and "competitiveness" review for all its businesses and manufacturing facilities.