XSYS to increase prices
Surcharges implemented for nyloflex and ThermoFlexX
XSYS announced the global surcharge of its products due to shortages and increased prices of raw materials and utilities.
XSYS will be implementing a temporary global surcharge of 6% for nyloflex and 4% for nyloprint products.
The surcharge recoups a portion of the immensely high utility, raw material, transportation and packaging costs. The surcharge will apply to all orders with a shipment date on and after April 15th 2022.
“We can absorb some initial inflationary developments by smart hedging, long-term contracts with our suppliers, and continuous operational improvements. It is no secret that supply chains are under pressure, driving the market in the direction of relying on spot rates in order to secure supply,” said Friedrich von Rechteren, Global Commercial VP at XSYS.
The company will also be implementing a 10–15% price increase across the ThermoFlexX imagers and ThermoFlexX Catena equipment, as well as on spare parts and service agreements.
The company said that material cost for its ThermoFlexX imagers and Catena processing equipment has increased by 10–20% already in 2021 with no indication for recovery throughout 2022. In particular, it is experiencing significant cost increases across the following inputs and materials:
· Steel and plastics: Global shortages have caused price increases of at least 15% in 2021
· Electronics: Global shortages and supply chain issues resulted in double-digit price increases in 2021, and price increases have already been announced for 2022
· Energy: Soaring gas and electricity prices are increasing production costs for XSYS and its suppliers
· Logistics: Sea and land freight costs have increased not only for direct shipments to the customers of XSYS but also indirectly, further contributing to inflation of all input materials.
“We understand that this price increase is adding pressure to the business of our customers during these difficult circumstances, and it has not been an easy choice for us to make. However, to ensure consistent and reliable supply to our customers, we see no other way than passing on some of these costs,” von Rechteren concluded.