Global price hike across all Flint Group Packaging product lines
Flint Group Packaging announced it will further increase the prices of all its ink and coating products for the Flexible Packaging, Paper & Board and Narrow Web markets.
Increases will vary by product and will be applied throughout the remainder of 2021.
The company attributes the price hike due to the increasingly challenging conditions across the ink & coating supply chains.
In a press release, Flint Group Packaging asserted: "Conditions have worsened over the summer period as the availability of key raw materials, packaging & freight has tightened, driving costs to unprecedented levels."
"Flint Group Packaging is now facing confirmed cost increases at extraordinary levels and many key raw materials are on allocation following numerous force majeure events."
"Costs are increasing rapidly and supply is tightening across all procurement categories however, the vast majority of the cost escalation can be seen in the raw material markets."
The majority of the price hike will be on esters, resins (both UV and conventional), pigments, titanium dioxide (Ti02) & organic chemicals. Additionally, packaging and freight cost increases further compound raw material increases.
“It is clear that inflationary pressures are having a considerable effect on our supply chains. Unrelenting competition for resources and energy in markets still reeling from the effects of the global pandemic is a catalyst for compounding price increases of a scale not previously witnessed. We continue to face relentless cost and availability headwinds, across multiple procurement categories,” said Doug Aldred, Chief Commercial Officer, Flint Group Packaging.
“Acute shortages of essential feedstocks are jeopardising the supply of all our key raw materials – the situation is particularly pronounced for photo-initiators. Couple this with the pressure the global freight industry is under and it is evident that costs will continue to rise. As a matter of fact, some raw materials are reaching cost peaks not witnessed in twenty years or more,” said Emmanuel Bareaud, President, Flint Group Narrow Web.
“The security of supply is our number one priority. Despite the unprecedented conditions, we are completely committed to our customers and will collaborate with all our global supply chain partners, in order to mitigate as many negative effects as possible,” Aldred continued.
Despite expectations that the current conditions will continue to deteriorate well into 2022, the business said it will continue to invest in its assets, capabilities and operating efficiencies to mitigate adverse effects, wherever feasible. Where contracts allow, the company will seek to recover costs via a combination of extensive productivity optimisations, price increases, indexation and temporary surcharges.
Local sales representatives will soon be in contact to discuss the effect of these adjustments.