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Toll Free: 1.800.387.2840

2018 PRICE ADJUSTMENT

November 28, 2017

To our Valued Customers

Subject: Price Adjustment Notice

Our last price adjustment was announced 2 years ago. During this time the weakness of the Canadian dollar vs. USD persisted while the price of raw materials has increased significantly. Copper & Aluminum are up 29% and labour costs continued to increase due to both inflationary and legislated wage and benefit increases.

Rex was successful in offsetting these cost increases through productivity improvements over the past two years. However, with cost of raw materials projected to continue their upward movement and the weakness of the currency to persist into the foreseeable future we are forced to announce a price adjustment effective as of January 1, 2018.

This price adjustment will vary from 0% to 8% depending on type and size of the transformer. The average adjustment for Copper wound units will average about 5% while Aluminum wound units will increase by an average of 3%.

In the next few weeks our representatives will supply new price sheets effective in January 1, 2018. Purchase orders received up to December 31, 2017 will be honored at the current price levels but they must be for immediate shipment. Outstanding orders currently in the approval stage and not released for shipment prior to January 31, 2018 must be renegotiated at the new price levels.

Ontario customers will also receive price lists for transformers which meet the higher efficiency requirement that relates to Ontario efficiency legislation that becomes effective in January 1, 2018.

We ask for your understanding and remain committed to serve you responsibly and reliably with leading technology power magnetic products to meet your power distribution needs.

Please do not hesitate to contact us with your comments or if you require further information.

Sincerely yours,
Rory Thomson
Manager, Sales and Marketing
REX POWER MAGNETICS