These risks are associated with possible supplier defaults, rising raw-material and energy-sector prices, and the availability of certain raw materials. Our main raw materials are subject to a continual risk review. We minimize risks by concluding long-term supply agreements with highly creditworthy partners, by negotiating procurement agreements centrally and by having multiple suppliers for any one product. The probability of major procurement risks arising is relatively small. In the case of long-term raw-material agreements with fixed purchase obligations, Raw Materials Procurement aims to keep purchase quantities as flexible as possible.
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