Olin Brass Announces Product and Price Adjustments
Louisville, KY – GBC Metals, LLC (doing business as Olin Brass), a subsidiary of Global Brass and Copper, Inc., announced today the completion of a comprehensive product costing analysis in its Mill Products division in order to drive a step-change in performance and to strengthen the overall value proposition to its customers.
In a letter to its account base dated April 15, 2013 Olin Brass indicated that a primary component of its comprehensive product costing analysis was a thorough examination of its current product pricing particular to light gauge, narrow width, and specialty finish products.
Thomas J. Werner, Vice President of Marketing and Sales, of Olin Brass, stated “In conducting a comprehensive product costing analysis we have determined a significant disparity exists between the manufacturing cost and the customer conversion charges particularly to light gauge products, slit width products, and products with special finishes.”
He continued, “We have concluded that this disparity has existed for decades and is the result of historical pricing grids that do not reflect today’s cost differential of producing these products. Light gauge and narrow width products require more processing steps, more equipment time, more labor, and they incur more supplies and more utility expense. The current pricing structure simply does not reflect these operational costs or the disproportionate impact of inflation on these products.”
“To this end, effective with new orders shipped beginning June 28, 2013, Olin Brass announced new price schedules that reflect fabrication adders that apply to all alloys, including 100-200 series and high performance alloys.”
Lastly, to support existing and continued investments in downstream operations, Olin Brass is increasing the price of its reroll products by $0.05 per pound.
This modification includes all OEM commercial customers, all supply chain partners, including A.J. Oster, LLC and all Olin Brass downstream businesses.
About Global Brass and Copper, Inc. Headquartered in Schaumburg, Illinois, Global Brass and Copper, Inc. (“GBC”) is a leading manufacturer and distributor of copper and copper-alloy sheet, strip, plate, foil, rod, and fabricated components in North America and one of the largest in the world. GBC, through its subsidiaries, employs over 1,900 employees, and operates manufacturing facilities in East Alton, Illinois; Montpelier and Bryan, Ohio; Waterbury, Connecticut; and Cuba, Missouri; along with joint ventures in Japan and China. The company also operates A.J. Oster, a leading service center and distributor of brass and copper products in North America. GBC and its subsidiaries sell products under the Olin Brass and Chase Brass brand names. For further information visit www.gbcmetals.com, or www.chasebrass.com
Thomas J. Werner, Vice President of Marketing & Sales
4801 Olympia Park Plaza Suite 3500; Louisville, KY 40241