Draka reacts to mounting cost pressure
AUGUST 7, 2008 -- Fiber-optic cable manufacturer Draka Communications-Americas has announced price increases in response to dramatic increases in raw material and energy costs.
AUGUST 7, 2008 -- North American fiber-optic cable producer Draka Communications-Americas (search for Draka) has raised the price of its optical fiber cable products by 6% to 10% depending on their exposure to rising materials, energy, and transportation costs.
"The good news is global demand for fiber-optic cable is experiencing robust growth, and optical cable shipments for the first half hit record levels," reports Mike Amicone, president of Draka Communications-Americas. "Unfortunately, this good news must be tempered by concern. Raw material costs are rising at a startling rate, and Draka has absorbed multiple price increases on raw materials, especially petroleum based ones, as well as fuel and freight," he notes. "In addition, several of these manufacturers are rationing supply, further affecting pricing and lead times."
As part of its ongoing commitment to providing a quality product at a fair price, Draka says it will continue to be diligent in its efforts to mitigate this impact through a variety of programs, including energy conservation, process improvement, and alternative sourcing of raw materials and transportation.