Xinyi to Raise Prices Worldwide 10 Percent, Effective August 1
July 1, 2010

China-based Xinyi Automobile Glass (Shenzhen) Co. Ltd. has announced that will be increasing its prices by 10 percent for orders received after August 1, according to a recent letter sent to customers from its general manager, Charles Cha.

Cha attributes the increases to rising energy, labor and raw material costs.

"You may be aware that the labor cost in China will be 20 percent increasing [sic] from July 1, 2010, and it will be still on the rise," writes Cha. "The energy costs, which is one of the major cost factors in [the] glass business, have been increasing; the cost of raw materials has already increased by 40 percent so far this year and it is still on high level.

In addition to that, the rapid floating of major currencies worldwide like U.S. dollars, Euro and Chinese RMB makes us on a marginal profit level for all the export business. There are still unexpected and uncontrollable factors happening around us which affect our production and supply of auto glass."

Though the increase is expected to take effect August 1, Cha notes that, "if there is any abnormality on the ordering pattern, [Xinyi] reserve[s] the right to apply the new pricing system before the official execution date."

Xinyi notes that the same price increase applies to all of its export customers worldwide "and cover[s] all types of auto glass products, without any exception."

Cha was not available for comment at press time.

CLICK HERE for full text of letter from Xinyi.

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