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
"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.
HERE for full text of letter from Xinyi.
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