Salt Lake-based Huntsman Corp. said Tuesday that none of its manufacturing facilities was damaged by Hurricane Katrina.
However, the company said it has experienced a "dramatic" increase in the cost of energy and many of its key feedstocks. It also has been hurt by restrictions on the availability of certain raw materials, as well as logistics and transportation limitations.
Peter R. Huntsman, president and chief executive officer of the chemical giant, said in a prepared statement that some Gulf Coast region customers sustained damage to their operations, "which is impacting their ability to purchase our products. We are working to mitigate as efficiently and quickly as possible the impact of Hurricane Katrina on our operations but realize we likely will not know the full effect for some time to come."
Peter Huntsman has sent a letter to customers, informing them that the company is increasing prices on products as soon as contracts allow to reflect increasing raw material and energy costs.
Where permitted in agreements, the company is also adding fuel or transportation surcharges to product pricing, the company said.