Tuesday, May 23, 2006

Kodak to Raise Paper and Chemical Prices

Hard on the heels of a similar announcement by Fuji Photo Film Co. last week, Eastman Kodak Co. said it too will raise its prices on silver-halide based photographic paper and darkroom chemicals. The price hikes, expected to be between 4% and 10%, will affect both professional and consumer products and will take effect in July.

Kodak blamed the impending price increases on the inflated costs of raw materials:

Over the past several years, Kodak has been absorbing unrelenting increases in the costs of raw materials used to manufacture photographic paper and chemistry, including pulp, silver and petrochemicals. Other costs tied to the escalating price of energy–including transportation and packaging–also have increased. These pressures have reached the point where they can no longer be offset by Kodak's ongoing productivity programs.

What Kodak didn't say, however, was that the increasing acceptance of digital photography and its decreasing sales of traditional film, paper and chemicals has necessitated this increase. You can read Kodak's press release here.

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