Compounding the problem, numerous cases of force majeure, closures due to environmental reasons, and labor strikes have exacerbated an already tight market which has led to serious reductions in supply and product allocations. In spite of continued efforts to minimize the effects these supply chain challenges have placed on the ink industry, Siegwerk has announced a 5-7 percent price increase on all energy curable inks sold in the U.S. and Canada effective September 1, 2010.
The prices of many types of raw materials have been increased – ranging from 10-40% for pigments, 10-150% for resins, 5-10% for additives and 15-30% for solvents. While Siegwerk says it has worked to mitigate the effects of such large price increases on its customer base by focusing on cost reductions and process improvements, the company is no longer able to withhold the effects from its customers.
Jim Ross, president of Siegwerk USA and Canada states, “Siegwerk greatly appreciates its customers’ continued business and patience during these challenging times.” He continues, “Siegwerk is committed to being a world-class ink supplier and is doing everything possible to work through this global and regional shortage of raw materials while continuing to supply a consistent, quality product coupled with value-added services.”
Siegwerk is a supplier of printing ink for packaging and publications. The company, with 4,000 employees worldwide, generated revenues of $1 billion in 2009. The company is headquartered in Siegburg, Germany.