Grace Announces 2021 FCC Catalysts Pricing Actions
W. R. Grace & Co. (NYSE: GRA) announced a price increase of 3 to 9 percent for its Fluid Catalytic Cracking (FCC) catalysts, effective July 1, 2021. This rise is attributed to a recovery in the global refining industry and increased interest in premium catalyst technologies. The price hike aims to offset rising costs of raw materials and energy, while supporting ongoing investments in technology and services. Grace emphasizes its FCC technologies' ability to enhance profitability for refiners, often providing returns exceeding $1 per barrel.
- Price increase of 3 to 9 percent for FCC catalysts to offset rising costs.
- Increased demand for premium catalyst technologies as global refining recovers.
- FCC technologies demonstrate significant returns of over $1 per barrel for refiners.
- Rising costs for key raw materials, including aluminum-derived chemicals and natural gas.
- Inflationary trends impacting overall productivity despite efforts to increase efficiencies.
COLUMBIA, Md., June 21, 2021 (GLOBE NEWSWIRE) -- W. R. Grace & Co. (NYSE: GRA) stated that it will increase prices for its Fluid Catalytic Cracking (FCC) catalysts by 3 to 9 percent in 2021 based on product type and specific customer commitments. This increase will be effective July 1, 2021 or as contracts allow.
As the global refining industry recovers from the pandemic and margins for refined products have strengthened, Grace is seeing significant interest from refiners to rapidly return to using premium catalyst technologies to increase FCC unit profitability. Premium catalysts help relieve operating constraints, facilitate increased operating rates, and maximize product yields, thereby increasing profitability for refineries.
“Our FCC technologies, coupled with industry-leading technical support, have consistently outperformed alternatives, often returning value of more than a dollar per barrel to the refiner,” said Tom Petti, Grace’s President, Refining Technologies. “Time and again, we have demonstrated our ability to provide custom product solutions and expert-level technical service to create significant incremental profit for our refining customers.”
As Grace continues to deliver increasing value to its customers with premium technology, it also faces rising costs for certain key raw materials and energy, including aluminum-derived chemicals and natural gas, as well as freight and logistics cost increases. Grace remains focused on driving productivity through increased efficiencies; however, these efforts cannot completely offset current inflationary trends. The increase in catalyst prices will partially offset this inflationary trend while sustaining on-going investment in new technology, enhanced technical services, and leading manufacturing capabilities.
About Grace
Built on talent, technology, and trust, Grace is a leading global supplier of catalysts and engineered materials. The company’s two industry-leading business segments—Catalysts Technologies and Materials Technologies—provide innovative products, technologies, and services that enhance the products and processes of our customers around the world. With approximately 4,300 employees, Grace operates and/or sells to customers in over 60 countries. More information about Grace is available at grace.com.
Forward-Looking Statements
This announcement contains forward-looking statements, that is, information related to future, not past, events. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. Forward-looking statements include, without limitation, statements regarding: financial positions; results of operations; cash flows; financing plans; business strategy; operating plans; capital and other expenditures; impact of the COVID-19 pandemic on our business; competitive positions; growth opportunities for existing products; benefits from new technology; benefits from cost reduction initiatives; succession planning; markets for securities; the anticipated timing of closing of the proposed transaction between Grace and affiliates of Standard Industries Holdings Inc. and the potential benefits of the proposed transaction. For these statements, Grace claims the protections of the safe harbor for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Grace is subject to risks and uncertainties that could cause actual results or events to differ materially from its projections or that could cause other forward-looking statements to prove incorrect. Factors that could cause actual results or events to differ materially from those contained in the forward-looking statements include, without limitation: risks related to foreign operations, especially in areas of active conflicts and in emerging regions; the costs and availability of raw materials, energy, and transportation; the effectiveness of Grace’s research and development and growth investments; acquisitions and divestitures of assets and businesses; developments affecting Grace’s outstanding indebtedness; developments affecting Grace’s pension obligations; legacy matters (including product, environmental, and other legacy liabilities) relating to past activities of Grace; its legal and environmental proceedings; environmental compliance costs (including existing and potential laws and regulations pertaining to climate change); the inability to establish or maintain certain business relationships; the inability to hire or retain key personnel; natural disasters such as storms and floods; fires and force majeure events; the economics of its customers’ industries, including the petroleum refining, petrochemicals, and plastics industries, and shifting consumer preferences; public health and safety concerns, including pandemics and quarantines; changes in tax laws and regulations; international trade disputes, tariffs, and sanctions; the potential effects of cyberattacks; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement between Grace and Standard Industries Holdings Inc.’s affiliates; the failure to obtain Grace shareholder approval of the transaction or the failure to satisfy any of the other conditions to the completion of the transaction; risks relating to the financing required to complete the transaction; the effect of the announcement of the transaction on the ability of Grace to retain and hire key personnel and maintain relationships with its customers, vendors and others with whom it does business, or on its operating results and businesses generally; risks associated with the disruption of management’s attention from ongoing business operations due to the transaction; the ability to meet expectations regarding the timing and completion of the transaction; significant transaction costs, fees, expenses and charges; the risk of litigation and/or regulatory actions related to the transaction; other business effects, including the effects of industry, market, economic, political, regulatory or world health conditions (including new or ongoing effects of the COVID-19 pandemic), and other factors detailed in Grace’s Annual Report on Form 10-K filed with the SEC for the fiscal year ended December 31, 2020, as amended, and Grace’s other filings with the SEC, which are available at http://www.sec.gov and on Grace’s website at www.grace.com. Grace’s reported results should not be considered as an indication of its future performance. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Grace undertakes no obligation to release publicly any revisions to its forward-looking statements, or to update them to reflect events or circumstances occurring after the dates those statements are made.
| Media Relations Caitlin Leopold T +1 410.531.8870 caitlin.leopold@grace.com | Investor Relations Jason Hershiser T +1 410.531.8234 Jason.hershiser@grace.com |
FAQ
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