Flint Group Packaging Inks Europe announces solvent surcharge
By PrintAction Staff
By PrintAction Staff
Flint Group Packaging Inks Europe is implementing a solvent surcharge for its solvent-based inks and coatings in Europe, effective April 1, 2020.
In a March 30 statement, Flint Group said that 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 March 31, 2020, will not be affected, Flint Group said.
“The progressively worsening global economic situation caused by the coronavirus (COVID-19) pandemic is placing untenable pressure on the supply chain for packaging inks and coatings,” the statement said. “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 said it’s witnessing increasing rates of absenteeism and sickness at all sites and disruptions throughout supply chains, and that these have meant that the standardization of production lines has become necessary; in some cases, customers may need to accept alternative products to ensure the continuity of supply.
“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,” said Kim Melander, VP & GM Packaging Inks Europe. “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 said it is “constantly reviewing the commercial viability of its raw material catalogs to assess whether further increases will be required.”