Surcharges take effect immediately.
Siegwerk, one of the world's leading suppliers of printing inks for packaging applications and labels, will introduce surcharges for solvent-based packaging inks and coatings in the EMEA region (Europe, Middle East and Africa) with immediate effect.
Some raw materials, particularly alcohols, have been severely affected in terms of price and availability due to the spread of coronavirus (COVID-19). This is due to the increased demand for products with disinfectant properties and potential government restriction and contracting measures. Demand for these products, particularly for ethanol, continues to exceed supply, resulting in reduced global availability and rapid price increases. In addition, due to the industrial shutdowns in China and India and disruptions in freight and logistics as well as other isolated supply interruptions, Siegwerk is not always in a position to avoid price increases without an increased risk of supply disruptions.
Siegwerk's central crisis management team is in constant communication with colleagues around the world to manage any risk of Siegwerk interrupting supply to the market. The organisation has established a global network of alternative supply sources for all raw materials and can switch between suppliers whenever necessary. At present, Siegwerk is sufficiently covered to meet the usual customer demand.
"To ensure a continuous supply of Siegwerk products, we have received or are currently in the process of obtaining official government certification as an important supplier to the food and pharmaceutical segment in every country where we operate, and thus belong to the critical infrastructure industry," said Mike van Breugel, Director Global Purchasing at Siegwerk. Critical infrastructure industries have a special responsibility to maintain normal operations to supply specific products related to the safe distribution of food and medical products.
Despite great efforts to reduce cost increases, there are clear indications that Siegwerk will pay higher prices for products with disinfectant properties for the duration of the COVID 19 crisis. In addition, Siegwerk must be prepared in case governments divert products for medical purposes - a situation beyond the company's control.
Specific surcharges for printing ink and coating categories are communicated to customers individually. Prices may vary depending on ink, waste or coating.
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