Grace Announces Surcharge on FCC SOx Reduction Additives

COLUMBIA, Md., April 26, 2018 (GLOBE NEWSWIRE) -- W. R. Grace & Co. (NYSE:GRA) will institute a surcharge of $0.35 per pound ($0.77 per kilogram) on the price of its sulfur oxides (SOx) reduction additives used in Fluid Catalytic Cracking (FCC) units. This price adjustment will offset recent increases in the cost of vanadium and will be effective immediately as contracts allow.

Vanadium is a key raw material in the manufacture of FCC SOx reduction additives. Decreased supply, caused by recent U.S. sanctions on Russia and increased environmental restrictions in China, coupled with increased demand for ferrovanadium for steel production, have combined to create rapidly escalating vanadium prices. The London Metal Bulletin index for V2O5 (vanadium), which, historically, has been in the range of $4-6 per pound, exceeded $15 per pound in March 2018. Consequently, Grace has experienced a significant increase in the production costs for Super DESOX® and Super DESOX® OCI additives. While Grace has secured vanadium supply to ensure no supply disruptions to our customers, a surcharge is necessary to offset the increased vanadium cost and to support Grace’s ongoing development of next-generation products, enhanced technical services, and increased manufacturing capabilities to serve our global customers.

Grace will implement this surcharge based on the V2O5 market pricing in the London Metal Bulletin, the vanadium content of our products, and the cost premiums associated with converting vanadium raw materials to the compounds used in these products. The current index level of $15 per pound will result in a price increase of $0.35 per pound ($0.77 per kilogram) for both Super DESOX^® and Super DESOX^® OCI. Grace will review and adjust this surcharge quarterly.

About Grace

Built on talent, technology, and trust, Grace is a leading global supplier of catalysts and engineered materials. The company’s two industry-leading business segments—Catalysts Technologies and Materials Technologies—provide innovative products, technologies, and services that enhance the products and processes of its customers around the world. With approximately 3,900 employees, Grace operates and/or sells to customers in over 60 countries. More information about Grace is available at grace.com.

This announcement contains forward-looking statements, that is, information related to future, not past, events. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. Forward-looking statements include, without limitation, expected financial positions; results of operations; cash flows; financing plans; business strategy; operating plans; capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and cost reduction initiatives, plans and objectives; and markets for securities. For these statements, Grace claims the protections of the safe harbor for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. Like other businesses, Grace is subject to risks and uncertainties that could cause its actual results to differ materially from its projections or that could cause other forward-looking statements to prove incorrect. Factors that could cause actual results to differ materially from those contained in the forward-looking statements include, without limitation: risks related to foreign operations, especially in emerging regions; the costs and availability of raw materials, energy and transportation; the effectiveness of its research and development and growth investments; acquisitions and divestitures of assets and businesses; developments affecting Grace’s outstanding indebtedness; developments affecting Grace's pension obligations; its legal and environmental proceedings; environmental compliance costs; the inability to establish or maintain certain business relationships; the inability to hire or retain key personnel; natural disasters such as storms and floods, and force majeure events; changes in tax laws and regulations; international trade disputes, tariffs and sanctions; the potential effects of cyberattacks; and those additional factors set forth in Grace's most recent Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, which have been filed with the Securities and Exchange Commission and are readily available on the Internet at www.sec.gov. Reported results should not be considered as an indication of future performance. Readers are cautioned not to place undue reliance on Grace's projections and forward-looking statements, which speak only as of the dates those projections and statements are made. Grace undertakes no obligation to release publicly any revision to the projections and forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.

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