The market for carbon fiber raw materials is heating up. Due to the increasing use of carbon fiber materials in the latest Boeing and Airbus aircraft the necessary raw materials are becoming scarce in the next few years. This leads to dramatic developments of prices for raw materials. Some products have seen a 60% price increase in only three months. Occasionally, day-to-day pricing has replaced long-term contracts.
These developments force us to adjust our prices. Starting March 1, 2006, we will be raising the prices for our carbon fiber products by 7 % to 11 %. Of course, all orders received before March 1 will still be filled at the current prices.