Benzinga | Oct 25, 2021 04:37PM EDT

Ampco-Pittsburgh Reports Its Union Electric Steel Unit To Raise Prices Of Its Forged Engineered Products By 12-18%

Ampco-Pittsburgh Corporation (NYSE:AP) announced today that its subsidiary, Union Electric Steel Corporation ("Union Electric Steel" or "the Corporation"), will raise prices on its forged engineered products (FEP). This increase is effective immediately on all new orders received as of October 25, 2021, or as relevant contract terms permit. The Corporation will also implement an alloy and energy surcharge on all orders shipping on or after January 1, 2022.

The price adjustments are driven by upward pricing pressures on the cost of raw materials, natural gas, electricity, transportation, and other consumables, increasing production costs due to growing product demand, and other global supply chain factors. Consequently, Union Electric Steel is increasing its pricing levels by approximately 12-18% for all forged engineered product (FEP) lines worldwide.

Commenting on the announcement, Skip Reinert, Vice President of Sales and Marketing, stated, "As the overall metal industry has ramped activity, manufacturing and supply chain costs, including labor and transportation, have increased dramatically. Additionally, our business continues to be impacted by the increasing costs of key raw materials. This price adjustment is necessary to maintain a reliable supply of superior-quality products to our customers."