Miraclon announces price increase and surcharge

Jo Francis
Friday, January 7, 2022

Miraclon has become the latest supplier to announce price increases due to rising input costs.

Miraclon: "securing supply for customers is overriding priority"
Miraclon: "securing supply for customers is overriding priority"

The firm was formed from the sale of Kodak’s flexographic platemaking division in 2019, and still retains use of the Kodak and FlexCel names.

Miraclon has announced a global price increase of 6% on all of its products, effective 7 February. It is also bringing in temporary surcharges to mitigate higher prices for distribution and freight.

It cited the rapid price inflation of raw materials, energy, labour and distribution costs “impacting the entire package printing value chain”, and said it believed its approach was as fair and equitable as possible for customers.

It’s the first time Miraclon has put up prices worldwide since 2008, barring some local inflation and foreign exchange impacts in specific markets.

CEO Chris Payne told Printweek: “The flexo and packaging market has been in growth mode for a decade and we have some great technology that is very different to other offerings. This has enabled us to grow annual sales and enabled Miraclon to drive internal efficiencies. Our customers benefitted with constant prices that helped them grow their businesses.”

He said the business had absorbed standard inflation and other costs since Kodak launched the FlexCel NX digital plate at Drupa 2008, but in the current circumstances “securing supply for our customers is our overriding priority”.

“After weighing a combination of factors, we are taking two separate actions, because there are two different market forces at work. First, we’re raising the price of all our products to address the higher costs for raw materials, labour, utilities, and business services we are now paying. Second, we’re implementing temporary surcharges in response to the current higher costs as a result of the significantly extended supply chain and raised prices for distribution and freight services.”

Payne said Miraclon believed that these increased costs were a temporary situation “that will moderate”.

“As soon as we are able to, we will reduce, or remove, the surcharges. We are confident this strategy is in the best interests of our customers, the supply chain and Miraclon.”

During the pandemic Miraclon has ramped up production at its manufacturing sites and now holds twice as much inventory of raw materials and finished goods as it did pre-pandemic in order to ensure continuity of supplies to customers.

The firm said that trade shops, converters, brands and retailers were prioritising security of supply over price.

“This means paying the prices for goods and services that the market demands. Ensuring all players in the value chain get a fair return is the only way to guarantee a healthy and resilient supply chain,” Miraclon stated.

The firm has also set up an online resource detailing the factors influencing its decisions.

LATEST COMMENTS ON PRINTWEEK

© MA Business Limited 2022. Published by MA Business Limited, St Jude's Church, Dulwich Road, London, SE24 0PB, a company registered in England and Wales no. 06779864. MA Business is part of the Mark Allen Group .