Flint Group Packaging Inks Europe announces a solvent surcharge across all solvent-based inks and coatings.
Flint Group Packaging Inks Europe today confirms the implementation of a solvent surcharge for its solvent-based inks and coatings in Europe, effective 1st April 2020.
The surcharge will be implemented as promptly as possible and will vary depending upon the specific product portfolio and commercial terms each customer has in place. The surcharge will remain active until the current raw material volatility subsides. Orders received up until 31st March 2020 will not be affected.
The progressively worsening global economic situation caused by the current coronavirus (COVID-19) pandemic is placing untenable pressure on the supply chain for packaging inks and coatings. Supply across a number of raw material categories, notably solvents, is tightening and costs are rising quickly as the market becomes more constrained. Additionally, freight constraints are resulting in higher costs across all transportation modes.
Flint Group is witnessing increasing rates of absenteeism and sickness at all sites and disruptions throughout supply chains have meant that the standardisation of production lines has become necessary; in some cases, customers may need to accept alternative products to ensure the continuity of supply.
Mr Kim Melander, VP & GM Packaging Inks Europe 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 – we continue to monitor the situation closely and will stay in regular contact with our customers to discuss any further developments.”
All other raw material categories, such as pigments, are being closely monitored as the pressure in the market builds. Flint Group is constantly reviewing the commercial viability of their raw material catalogues to assess whether further increases will be required.
Flint Group local sales representatives will be in contact with all customers to discuss how this surcharge will impact each business.
Flint Group remains resolutely committed to the packaging markets throughout this crisis.