Taylor-Wharton Announces Energy Surcharges on Small & Intermediate Size High Pressure Cylinders and All Acetylene Cylinders
Extraordinary Hurricane Related Escalating Natural Gas Prices Cited
Mechanicsburg, PA – (October 3, 2005): Effective October 7, 2005, Taylor-Wharton will assess surcharges for all shipments of small and intermediate size high pressure cylinders and all acetylene cylinders. Scott Boyd, Vice President of Sales and Marketing noted that, “The recent extraordinary increases in the cost of natural gas supplied to our Huntsville, Alabama factory make it necessary to immediately begin adding surcharges for products produced at the Huntsville Operations. The 45% increases from our natural gas supplier are unprecedented and are impossible to offset through efficiency measures.” He also cited a recent reports in the Mobile Register and Huntsville Times as evidence that future, additional surcharge increases may be necessary.
“John Davis, the president of local gas supplier Mobile Gas Service Corp., said the Energy Department's projections for home-delivered natural gas prices seemed to be significantly higher than what most energy traders were expecting. ... In the wake of Katrina, early assessments of the Gulf's rich petroleum fields focused on what was happening to the oil supply, as gasoline prices rose to all-time highs. But relatively little attention has been directed to the Gulf's role in supplying natural gas to homes, industries and power plants around the country.” Mobile Register, September 8, 2005
“ ... in a memo to the Huntsville City Council, utility President William Pippin said prices "will increase 45 percent." ... "Natural gas prices for October 2005 have increased 45 percent over last year," the memo says. "We have no choice but to pass this wholesale increase of 45 percent on to the customer." The increase will take effect in the October billing cycle, which starts today.” Huntsville Times, September 27, 2005 Boyd further noted that there is also potential for a swift reduction or termination to the energy surcharges as reported in the September 27th edition of the Huntsville Times. "Weather forecasts of a mild October, November and December could lead to a lowering of wholesale commodity pricing.” Huntsville Times, September 27, 2005
Boyd stated that, “If the price reductions from our natural gas supplier occur, we will lower or eliminate our energy surcharges appropriately.”
Surcharges for specific products will range from .07% to 4.3% dependent upon the size and construction of the container. Surcharges for small and intermediate size high pressure cylinders will average 2.8% and acetylene cylinder surcharges will average 2.7%. The surcharges will be effective for all orders received on or after October 7, 2005.
Taylor-Wharton’s price and surcharge schedules are available at www.taylorwharton.com.
Harsco GasServ comprises four complementary manufacturing and service businesses that combined, form the world’s leading technology, service and manufacturing network for gas applications involving pressure vessels and precision valves. The Group operates 23 manufacturing, sales, warehouse and service facilities in 9 countries on 5 continents, and markets its products in over 80 countries worldwide. Additional information about Harsco GasServ can be found at www.harscogasserv.com.
Harsco Corporation is a diversified, worldwide industrial services and products company with annual sales in excess of $2.5 billion. Harsco’s four market-leading business segments provide mill services, access services, engineered products and services, and gas containment and control technologies to customers worldwide. The company employs 18,500 people at over 400 locations in more than 40 countries of operation. Additional information about Harsco can be found at www.harsco.com.
