West has inked a global supply agreement that gives it discounted pricing on materials used in its polymer-based packaging.
Entering into the agreement with ExxonMobil Chemical gives West Pharmaceutical Services discounts on certain butyl polymers. West uses these materials in a number of polymer-based pharmaceutical packaging products.
Variability in the pricing of raw materials has caused problems for a number of companies in recent years. Inking the supply agreement may help West cuts costs. ExxonMobil will continue to impose surcharges based on the volatile price of oil.
The agreement was entered into at the end of June but runs from January 1 2011 through to December 31 2013.