Flint Group Packaging Inks Europe has confirmed the implementation of a surcharge for its solvent-based inks and coatings in Europe due to the current raw material volatility.
The progressively worsening global economic situation caused by the Covid-19 pandemic is placing pressure on the supply chain for packaging inks and coatings. Supply across several raw material categories, notably solvents, is tightening and costs are rising quickly as the market becomes more constrained. Additionally, freight constraints are resulting in higher costs across all transportation modes.
Flint Group is witnessing increasing rates of absenteeism and sickness at all sites and disruptions throughout supply chains have meant that the standardization of production lines has become necessary; in some cases, customers may need to accept alternative products to ensure the continuity of supply.
‘The worsening global situation caused by Covid-19 is having a significant impact on our business, yet our facilities continue to deliver consistent output despite major supply chain disruptions,’ said Kim Melander, vice president and general manager at the Packaging Inks Europe arm of Fling group. ‘However, this output comes at a significant cost which to date we have borne alone. We remain optimistic that this surcharge is a temporary measure – we continue to monitor the situation closely and will stay in regular contact with our customers to discuss any further developments.’
The company is closely monitoring all other raw material categories, such as pigments, and reviewing their commercial viability to assess whether further increases will be required.
The price increase will be implemented from April 1 and will vary depending upon the specific product portfolio and commercial terms each customer has in place. Orders received up until 31st March 2020 will not be affected.