Sun Chemical will increase prices of liquid inks and coatings for flexible packaging for its customers across all regions, effective January 1, 2018.
The percentage increase will be in the high single digits and will vary dependent on the product composition and product line. Sun Chemical will communicate specific increases directly with customers.
The company cited costs rising on an annual basis since the end of 2016, with further increases expected for 2018. Sun Chemical identified these being mainly due to production and environmental restrictions on key materials, especially in China where there has been an unprecedented number of force majeure incidents and escalations in the prices of oil, solvents and key monomers for polyurethane (PU) resins. Additionally, the supply situation of titanium dioxide (TiO2) white pigment remains tight, driving continued cost increases, Sun Chemical stated.
Felipe Mellado, chief marketing officer at Sun Chemical, said: ‘The high levels of raw material costs are unprecedented and as a result make it necessary for us to keep our ink prices under review. We work proactively with our supply chain partners to manage and minimize costs, but due to the economic reality, cost pressures have been constant and significant price increases are being passed on to the inks industry.
‘To ensure we maintain high levels of product quality and service, it has become necessary to increase customer prices.’