Kaiser aluminum introduces energy surcharge

Jan. 1, 2020
Kaiser Aluminum will begin enacting fuel surcharges for new fabricated product orders beginning July 1. The company says the decision is based on an effort to reduce exposure to rising costs for natural gas, electricity and diesel fuel.
Untitled Document

Kaiser Aluminum will begin enacting fuel surcharges for new fabricated product orders beginning July 1. The company says the decision is based on an effort to reduce exposure to rising costs for natural gas, electricity and diesel fuel.

“These surcharges are essential to mitigate the extraordinary rise in costs related to energy that we have been absorbing for several years,” says Jack A. Hockema, president, chairman and CEO of Kaiser Aluminum. “Commodity prices for natural gas and diesel fuel leapt roughly 60 percent in May compared to the 2007 average. These energy prices are spiraling and highly volatile, so we’ve elected to introduce a surcharge as the most transparent method to recover these costs.”

The surcharges are based on a calculation tied to indices provided by the U.S. Department of Energy and will be updated on a monthly basis. Customers can view the formulas for calculating surcharges on the Kaiser Aluminum Web site at www.kaiseraluminum.com. Up-to-date information on how these surcharges impact specific products will also be included on the site.

“We’re currently evaluating methods to address the significant increases in the costs of alloying materials, such as magnesium and copper,” Hockema adds. “We also continue our aggressive pursuit of cost reduction initiatives designed to offset other inflationary cost pressures.”

The company adds that commodity prices for natural gas and diesel fuel have increased 60 percent over last year's averages.

 

 

Sponsored Recommendations

Best Body Shop and the 360-Degree-Concept

Spanesi ‘360-Degree-Concept’ Enables Kansas Body Shop to Complete High-Quality Repairs

How Fender Bender Operator of the Year, Morrow Collision Center, Achieves Their Spot-On Measurements

Learn how Fender Bender Operator of the Year, Morrison Collision Center, equipped their new collision facility with “sleek and modern” equipment and tools from Spanesi Americas...

ADAS Applications: What They Are & What They Do

Learn how ADAS utilizes sensors such as radar, sonar, lidar and cameras to perceive the world around the vehicle, and either provide critical information to the driver or take...

Banking on Bigger Profits with a Heavy-Duty Truck Paint Booth

The addition of a heavy-duty paint booth for oversized trucks & vehicles can open the door to new or expanded service opportunities.