Solideal Introduces Steel Surcharge

Solideal has announced that it is to introduce a steel charge on all wheels and assemblies, effective 15 May 2008. According to an official statement on the matter, the action is “strictly due to the hyper-inflation in steel prices. The surcharge will be evaluated monthly and will begin at the rate of US$0.49/kg.” Solideal CEO, Cesar Clemente, explained: “As commodity prices are increasing so dramatically, we have absolutely no choice but to make this move.” The company is also planning to announce a general price increase on tyres and wheels in June.

According to Kristoff Van der Burght, Solideal’s Business Line Manager for Wheels, the raw material situation is “definitely a set-back.” He continued: “Despite these industry-wide cost problems, we are winning business with our European design team and our value-added service, providing a tyre and wheel mounted at the manufacturing source.”