Xsys: 'unprecedented' rise in costs means prices have to go up
Tuesday, January 11, 2022
Xsys has followed fellow flexo plate supplier Miraclon in announcing a 6% price increase on its Nyloflex product range.
The Germany-headquartered Xsys business, formerly part of Flint Group, was acquired by private equity firm Lone Star Funds four months ago.
In a statement, Xsys said the rise in input costs had reached “unprecedented levels” and it was no longer able to absorb the increases through its own cost reduction efforts.
The firm cited “double digit prices increases” levied by suppliers of feedstock and raw materials; soaring energy prices affecting its own production costs and also resulting in higher costs from its suppliers; and the well-documented and continuing increases in transport and freight costs.
The 6% price increase on its Nyloflex products will be effective from 1 February. The plates are used for a range of applications including corrugate pre- and post-print, flexible packaging, and tags and labels.
Friedrich von Rechteren, global commercial VP at XSYS, said the firm’s priority “remains, as always, to offer a constant and reliable supply of products to our customers, irrespective of the current market conditions”.
He commented: “We will naturally maintain full support with technical service and quality products during this challenging period to ensure that our customers can continue to service their customers.”
Von Rechteren said that Xsys would also invest in additional projects and efficiency drives “designed to counter the inflation where possible”.
Miraclon announced a 6% price increase and temporary surcharge on distribution costs at the end of last week.