Price Revision of “SUMIKON®” EME (Epoxy Molding Compound)

February 1, 2021

Tokyo, Japan – February 1, 2021 Sumitomo Bakelite Co., Ltd. (TOKYO: 4203 HQ: Shinagawa-ku, Tokyo, President and Representative Director: Kazuhiko Fujiwara) this is to inform you of the proposed price revision for “SUMIKON^®” EME.

Since last autumn, the EME demand has substantially increased exceeding our present capacity. In order to fulfill the ever-increasing demand, we have decided to invest on production capacity expansion aimed at establishing stable supply system as soon as possible.

On the other hand, the price of major raw materials for EME remains high due to the short supply triggered by the strict control on environmental protection mandated by Chinese government since 2017. Moreover, the overall logistics cost has much increased since last year due to the insufficient freight container availability and increased air-freight due to reduced flight service all over the world.

Thus far, we have made every effort for cost reduction on our down to maintain the current EME price. However, we have reached to a conclusion that we are no longer able to absorb those increased cost by ourselves alone, and to maintain the current price to ensure stable supply in the long term.

It is painful to inform you of the price revision (increase) at this time, but it is surely necessary.

We are committed to making continuous efforts to ensure stably supply and to further enhance the quality of “SUMIKON^®” EME meeting customers’ expectations.

Your understanding and cooperation would be highly appreciated.

1. Price revision:	：	“SUMIKON^®” EME, 10～20％ * Details shall be announced by the local sales representative.
2. Implementation timeline:	：	effective from shipments made on and after March 2021