LAMPADURA, India, Oct. 24, 2018 (Press Release) -As we move into the 4th Quarter of 2018, the ink and coating industry continues to face raw material shortages, critical supply chain conditions and supply disruptions. These continued cost burdens necessitate that Flint Group Packaging Inks in India initiate a price increase with immediate effect. Argumentation is discussed below and Flint Group sales representatives are already discussing the impact with customers.
Unprecedented price inflation has been witnessed in resins, titanium dioxide, pigments, and key solvents; all of these feedstocks affect the cost base of both solvent-based and water-based inks and coatings. To highlight a few specific examples:
- Resin prices have increased due to supply constraints and facility closures.
- Numerous pigment production facilities in China have reduced capacity; some have been ordered to close, in-line with the, ‘Blue Skies’ initiative.
- Solvents are under pressure due to production outages, supply tightening and escalation in crude oil costs, all resulting in a finished product cost escalation between 11-17%.
- Persistent tightening and price escalation across the Titanium Dioxide (TiO2) market.
Rising material costs coupled with increased global trading challenges, currency fluctuations and economic challenges in some regions are presenting the industry with a complex and volatile cost landscape.
Upal Roy, Managing Director, Flint Group India, explains, “Despite our staunch efforts to mitigate these supply dynamics by deploying significant capital and internal resources to efficiency projects, the cost pressure remains relentless. Recent price increases have not been sufficient to offset the cost increase burden and Flint Group cannot continue to absorb the rising costs internally. The situation now necessitates that we pass some increases through the supply chain.”
Mr. Roy concludes, “Product quality and consistency are essential for our customers which is why we will continue to prioritise efficiency improvements and the sourcing of high quality materials at a reasonable price. Customers can always rely on us for best in class products at the most economic cost possible.”
Flint Group is dedicated to serving the global printing and packaging industry. The company develops, manufactures and markets an extensive portfolio of printing consumables and printing equipment, including: a vast range of conventional and energy curable inks and coatings for most offset, flexographic and gravure applications; pressroom chemicals, printing blankets and sleeves for offset printing; photopolymer printing plates and sleeves, plate-making equipment and flexographic sleeve systems; pigments and additives for use in inks and other colourant applications; Flint Group also designs, develops and delivers web-fed digital colour presses for labels and packaging applications, document printing, as well as commercial printing as well as platemaking equipment for the newspaper industry and computer-to-plate (CtP) solutions for the commercial printing market; With a strong customer focus, unmatched service and support, and superior products, Flint Group strives to provide exceptional value, consistent quality and continuous innovation to customers around the world. Headquartered in Luxembourg, Flint Group employs some 8200 people. Revenues for 2017 were € 2.2 billion. On a worldwide basis, the company is the number one or number two supplier in every major market segment it serves.