Flint Group Packaging has announced its intent to increase the prices of its ink and coating products globally, effective from 1 April.
The company said the move is a result of its business facing an “extraordinarily turbulent set of supply chain conditions”, exacerbated by the global pandemic.
It said costs are increasing and supply is tightening across almost all procurement categories and multiple petrochemical derivatives, such as resins and solvents, in addition to price hikes of pigments and freight.
Flint Group Packaging inks president Doug Aldred said, “The unusual set of supply chain conditions currently witnessed are some of the most severe I have seen. Our business is facing substantial cost and availability headwinds, across multiple raw material categories. Resins, solvents and pigments (including Titanium Dioxide), are particularly problematic”.
Flint Group Packaging added that it has continued to collaborate with all its global supply chain partners, in order to mitigate as many negative effects as possible.
However, it mentioned that recent upstreams have resulted in force majeure announcements and the acute global freight imbalance is impeding some corrective actions.
“Regrettably, despite our tenacious efforts to offset cost and risk for our valued customers, the pronounced and prolonged pressure – experienced in some categories since mid-2020 – has forced us to act. Some raw materials, such as UV resins, additives and pigments, are reaching cost peaks not witnessed in the last ten years or more,” Flint Group narrow web president Emmanuel Bareaud added.
Bareaud also said that the business continues to invest in its assets, capabilities and operating procedures to negate the adverse supply chain circumstances, wherever feasible.
“Nonetheless, it has become clear that these activities alone will not suffice; the company will seek to recover costs via a combination of extensive productivity optimisations, price increases and temporary surcharges,” he said.