Flint Group Packaging announces a global price increase
The increasingly challenging array of conditions present across the ink and coating supply chains are showing no sign of abating. Conditions have worsened over the summer period as the availability of key raw materials, packaging and freight has tightened.
The company stated that 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. Esters, Resins (both UV and conventional), Pigments, Titanium Dioxide (Ti02) & Organic Chemicals represent the majority of the increases.
Pandemic is a catalyst
Doug Aldred, Chief Commercial Officer – Flint Group Packaging said, “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.”
Despite expectations that the current conditions will continue to deteriorate well into 2022, the business continues to invest in its assets, capabilities and operating efficiencies to mitigate adverse effects, wherever feasible. Nonetheless, it has become clear that these activities alone will not suffice; where contracts allow, the company will seek to recover costs via a combination of extensive productivity optimisations, price increases, indexation and temporary surcharges.
The European Coatings price ticker offers up-to-date information on costs for important raw materials for the paints and coatings industry.