Styron Europe secures approval on changing polystyrene contract timing

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Styron Europe secures approval on changing polystyrene contract timing

9 G4 A/ g# Q7 F0 `Friday, April 20, 2012
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Horgen, Switzerland - Styron Europe announced that it has secured the endorsement of more than 20 of its key customers to change the timing for settling monthly contract pricing for polystyrene in Europe. As opposed to other products in the plastics industry or regions of the world which settle prices early in the month, polystyrene contract pricing in Europe continues to settle at the end of the month in a process that both Styron and its customers describe as outdated, inefficient and detrimental for stakeholders across the industry. The proposal calls for contract price settlement to take place in the first week but not later than the 10th working day of each month from May 1. “On March 16, we made an appeal for an improved process to settle contract pricing for polystyrene to help customers and the industry in Europe,” said Paul Moyer, Styron’s vice president and general manager for plastics. “We are pleased to report that nearly two dozen of our key customers support the proposal and have expressed their desire to switch the timing for contract pricing settlement as of May 1. We are optimistic about securing broader industry support in the next few weeks to make this a standard industry practice and improve pricing management and transparency for producers and customers.” The current system, in which orders are typically dispatched and delivered before the contract price of polystyrene is settled, presents a number of inefficiencies ranging from incorrect pricing to time-consuming accounting adjustments. The proposed timing settlement change will add transparency to the process and facilitate decision making for both buyers and sellers, particularly when it comes to managing volumes, financials and production planning.