Flint forced to implement surcharge
Monday, March 15, 2021
Flint Group is implementing a “significant temporary surcharge” in response to global events that the manufacturer said had resulted in a devastating impact on printing ink supply chains.
The group cited supply disruptions caused by the Covid-19 pandemic, combined with an “unprecedented increase in demand within China” as it emerges from the crisis, as well as increased demand for crude oil.
Flint said it was experiencing severe shortages of raw materials including pigments and resins, leaving the group and other ink makers scrambling to ensure availability of products for customers.
Tony Lord, president of Flint’s Commercial Publication and Sheetfed (CPS) business, said the operation was “working tirelessly with upstream partners” to avoid disruption to supplies.
He stated: “It goes without saying that we will take all necessary action to minimise cost impact in these challenging times. However, in order to ensure we meet our responsibilities, we have no choice other than to pass onto the supply chain a proportion of the cost increases being applied to us in the form of a significant temporary surcharge effective from April 2021.
“This action provides flexibility and a fast response time which is essential as we anticipate this will be a temporary measure as primary raw material markets align to post Covid demand.”
In February fellow ink maker Sun Chemical announced that rising input costs had forced it to raise prices, while earlier this month the British Coatings Federation issued a stark warning about raw material availability and the likelihood of price hikes as a result.