Flint and Siegwerk introduce solvent surcharges
Thursday, April 16, 2020
Two more inks groups have been forced to add a solvent surcharge to their inks and coatings as a result of the coronavirus pandemic, which has impacted solvent availability and pricing as raw materials are diverted to production of sanitising and pharma products.
Flint Group Packaging Inks Europe has implemented a surcharge on all solvent-based inks and coatings, which were effective on orders placed after 1 April.
Flint vice president and general manager Packaging Inks Europe Kim Melander said: “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. 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.”
In a statement, the company said it was closely monitoring prices of other raw materials, such as pigments, and highlighted the impact of staff shortages at its production sites and disrupted supply chains, which had meant that “standardisation of production lines has become necessary” resulting in some customers being offered alternative products.
Separately, Germany headquartered Siegwerk also rolled out surcharges on all solvent-based inks and varnishes in EMEA.
Its surcharge also came into force from 1 April.
Siegwerk director of global publishing Mike van Breugel said the group had worked hard to ensure the reliability of raw material supply, but that it was not possible to avoid price increases without increased risk of supply disruption.
These latest solvent surcharges follow the Sun Chemical implementing a surcharge and the British Coatings Federation warning the government of the challenges facing inks and coatings manufacturers as the availability of solvents are restricted.