PCB | October 02, 2006

PCB prices are on the rise

Viasystems, Inc., a global provider of printed circuit boards and electro-mechanical components and assemblies announced today that as a result of significant ongoing increases in raw material costs, it is increasing prices to its printed circuit board customers.
This price increase is the second interim price increase implemented this year, as a result of these continuing increases on its cost base.

“We have seen the prices of raw copper, crude oil, gold and silver hit record highs. This unprecedented increase in commodity costs has driven our material suppliers to increase their prices to us, specifically laminate, copper foil and resin costs. These material cost increases, together with ongoing labor rate and currency exchange rate inflation, have adversely impacted our cost base, where we have experienced increases as high as 20-30%. We have been aggressively pursuing cost reduction activities in order to minimize the impact of the cost increases on Viasystems and our customers. We have also used alternate materials or suppliers whenever possible. Unfortunately, we are unable to offset these recent cost increases and, therefore must again pass on some of the cost impact to our customers. With material costs representing approximately 50% of our costs, increases such as these are difficult to absorb," stated David M. Sindelar, CEO of Viasystems.

Effective October 2, 2006, Viasystems will begin the implementation of a price increase. The magnitude of the price increase should average approximately 5%, but will vary from customer to customer, based on the specific product's bill of materials and the effect the cost increase has had on it.


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