"In 2012, the global raw material markets have continued to be highly volatile," the company said. "Despite the rather flat economic outlook, there are still many challenges for the supply chain. Demand from the emerging markets is rising while supplier production capacities shrink, putting pressure on the entire printing ink sector."
Wolfgang Blumschein, vice president of sales, print media Europe, adds, “The situation is further aggravated by the weak Euro, as most world market base materials are traded in USD or USD-related currencies, like the Chinese Yuen. This will inflate the raw material prices even further for the foreseeable future.”
He continues, “In addition to these pressures on the raw material markets, significant cost increases in transport, packaging and energy have also had an impact on our industry and are expected to rise further in 2013.”
The price increase will generally range from 2% - 6% depending on the product segment. There may though be some products that lie outside this range due to the type and concentration of raw materials making up their composition.
Doug Aldred, president of packaging and narrow web, explains, “Cost pressure has been constant and the magnitude of the increases requires that we pass some of the increases through the supply chain. Flint Group has made every effort to mitigate these cost increases by process optimization and a leaner organization as part of the continuous improvement process. However, consistent product quality is vital to our valued customers and will not be compromised.”
Flint Group representatives will contact each customer individually to explain the impact of these increases.