Flint-Schmidt/XSYS Print Solutions announces price increases

Flint-Schmidt/XSYS Print Solutions has announced price increases for packaging printing inks across Europe by a range of 5 to 8 per cent for water based inks and 7 to 12 per cent for solvent based inks. These increases will be effective from January 1, 2006, or as contract term allows.

‘The high prices of crude oil and natural gas are the key drivers for price increases in ethylene and propylene which are the main basis for the raw materials in our products’, said Doug Aldred, vice president and general manager, Packaging Inks Division. ‘We have so far tried to absorb these increases through intensive cost management and significant improvements in operating efficiencies. However the extent of the increases in key raw materials over the past few months has intensified, and we now find ourselves in an unsustainable position where we must pass price increases on to our customers. We have taken this difficult, but necessary step to ensure that we remain a viable and sustainable supplier to the industry.’

Price increases have also been announced for coldest colored inks (8 per cent) and coldest black product (11 per cent). The increases are to be applied with immediate effect. The company says that this price increase is necessary in view of the unprecedented rise in raw materials, driven by crude oil prices.

‘During 2005 we as an industry have faced dramatic price increases across all key raw materials by as much as 70 per cent over 2004. If we are to remain as a viable supplier to the news industry we have no choice other than to seek support from our customer base by passing these price increases through the value chain,’ said Tony Lord, vice president and general manager, News Inks Division.