Flint Group announces a global price increase for all Packaging Inks products
December 2017 – Increased, incremental cost escalation forces Flint Group to raise the prices of its Packaging Inks products.
Further to announcements made in March 2017, it has become clear that the raw material markets for many components within Flint Group’s Packaging Inks products have experienced price escalation. Many raw material markets remain highly volatile as 2017 comes to a close.
Q3 2017 saw significant increases and supplementary rises have been announced for Q4 2017. Current forecasts indicate that the price pressure will not lessen as the industry moves into 2018. These unique cost burdens necessitate that Flint Group Packaging Inks raise prices globally as of 1 January 2018. Argumentation is discussed below and our sales representatives are currently in the market discussing the magnitude of increases for each customer and segment.
Unequivocal price inflation has been witnessed in polyethylene and polyethylene resins, titanium dioxide, pigments, key solvents, glycerin and MMAs; all these feedstocks affect the cost base of both solvent-based and water-based inks and coatings. To highlight a few specific examples:
- Numerous pigment production facilities in China have been ordered to close, awaiting environmental inspection.
- Glycerin prices in 2018 are expected to be 80-90% higher than 2017.
- Key solvents are under pressure due to outages and tight material supply.
- Persistent tightening of and price escalation in the Titanium Dioxide (TiO2) market.
Doug Aldred, President Packaging Inks for Flint Group, explains, “Despite our tenacious efforts to mitigate these dynamics by deploying significant capital to efficiency projects, cost pressure has been utterly relentless. The situation now necessitates that we pass some increases through the supply chain. Product quality and consistency are essential for our customers which is why we will continue to prioritise efficiency improvements so they can assuredly rely on us moving into the New Year.”
Flint Group is dedicated to serving the global printing and packaging industry. The company develops, manufactures and markets an extensive portfolio of printing consumables, including: a vast range of conventional and energy curable inks and coatings for most offset, flexographic and gravure applications; pressroom chemicals, printing blankets and sleeves for offset printing; photopolymer printing plates and sleeves, plate-making equipment and flexographic sleeve systems; pigments and additives for use in inks and other colourant applications. With a strong customer focus, unmatched service and support, and superior products, Flint Group strives to provide exceptional value, consistent quality and continuous innovation to customers around the world. Headquartered in Luxembourg, Flint Group employs some 7900 people. Revenues for 2016 were € 2.3 billion. On a worldwide basis, the company is the number one or number two supplier in every major market segment it serves. For more information, please visit www.flintgrp.com.
Source: Flint Group