Kodak announced it will increase the price of Kodak offset printing plates globally. Plate prices will increase up to 9%.
The price of aluminum, the primary raw material used to manufacture printing plates, has increased dramatically in recent months. Despite internal cost reductions and improved operational productivity, the magnitude of rising aluminum prices can no longer be sustained by the company, as noted in Kodak’s Q1 2018 Earnings Conference Call.
“With aluminum prices now reaching multi-year highs, it has become necessary to institute a plates price increase. While Kodak has worked diligently to reduce its own costs to lessen the impact of aluminum, the delta has become too great for us to bear, while maintaining our brand promise as a supplier of quality plates to the industry,” said John O’Grady, president, print systems division, Kodak.
“Looking to the future, we are exploring different business models to reduce the effect of aluminum volatility on our customers. There are also measures that our customers can take to offset the increase in plate prices. Printers benefit from higher aluminum prices when they recycle their used plates, and many customers are saving additional money by switching to KODAK SONORA Process Free Plates to eliminate the costs of plate processing, including chemistry, water, and electricity costs,” O’Grady added.
Details of the new pricing structure will be communicated to all customers and dealers across the world in the coming weeks.