COSTER GROUP, founded in 1963, is a leading player in the aerosol industry. Aerosol Europe spoke with Dr. Claudio Contini.

AEROSOL EUROPE: Dr. Contini, when we talked last time in September 2005, just before the aerosol congress in Athens, you spoke of rapid changes in the markets and particularly within the aerosol industry. How do you see the current situation today, three years later?

Claudio Contini: All of the problems that we discussed three years ago have become much more serious. Three years ago the Dollar/Euro exchange rate was around 1.20, and as we speak it has just reached 1.60. This has impacted Coster in the USA, Argentina, the Middle East and Asia, where currencies are tied to the US Dollar. Prices have remained stable in local currency terms, but are much lower vis á vis the Euro.

As a result, it is becoming more and more difficult to compete: not only is it harder to export goods to dollar-area countries, but the goods exported from there are also much cheaper in Euro terms. Pressure on prices is also increasing as the market consolidates, and there are fewer, ever-larger customers.

We also observe that products manufactured in China and other low-cost countries are gradually improving in terms of quality. When we last spoke, the price of raw materials was rising, but in the last three years prices have sky-rocketed; steel, petroleum derivatives, everything has become much more expensive.

The cost of raw materials has grown by 90% in Dollar terms over the last three years, and by 45% in Euro terms, and we have not been able to reflect these increases in our prices. On the positive side, every year as China, India and other emerging markets continue to grow, 50 or 60 million people reach the point where they become consumers of mass market products. So while it’s true that we are in a mature market, it’s still growing.

To read Claudio Contini's full interview, please click on the link below: http://www.coster.com/news/eng/newtE.asp?orig=1&numpag=1&idnews=40