WEXHAM SPRINGS, UK, March 25, 2020 (Press Release) -Sun Chemical will implement surcharges affecting its solvent liquid inks in Europe, effective 1 April 2020.
The current situation is causing considerable pressure on the supply chain of alcohols – in particular, ethanol. With supply already limited in the second half of 2019 due to a bad crop of raw materials increasing the demand for fuel ethanol, the coronavirus (COVID-19) has caused further increased demand for pharmaceutical and sanitized products, with governments considering allocation measures. While availability is reducing globally, prices are increasing quickly.
In order to secure its supplies for the coming months, Sun Chemical has accepted higher prices to comply with current market conditions. The risk always exists that governments may seize the products for health emergency reasons – a situation that is beyond Sun Chemical’s control.
As from 1 April 2020, a solvent surcharge will be applied to Sun Chemical’s ink and varnish prices. Surcharges will vary depending on product types. Sun Chemical will communicate specific increases directly with its customers.
As a leading ink supplier, Sun Chemical is working hard to mitigate rising costs by implementing internal improvement programs and by maintaining very close communication with its suppliers and industry associations to ensure it is fully aligned to the latest procurement situation. The surcharges will last until the situation normalises.
“The pressure on the alcohol supply chain is causing an abrupt rise in raw material costs and unfortunately requires us to increase customer prices,” said Nicolas Bétin, Director Product Strategy EMEA, Sun Chemical. “We will continue to work with our supply chain partners to manage and minimize the impact on our customers.”
About Sun Chemical
Sun Chemical, a member of the DIC group, is a leading producer of printing inks, coatings and supplies, pigments, polymers, liquid compounds, solid compounds, and application materials. Together with DIC, Sun Chemical has annual sales of more than $7.5 billion and over 20,000 employees supporting customers around the world.
Sun Chemical Corporation is a subsidiary of Sun Chemical Group Coöperatief U.A., the Netherlands, and is headquartered in Parsippany, New Jersey, U.S.A.