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Flint CPS Inks planning to increase prices of raw materials selectively
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Wednesday, 13 November, 2019, 16 : 00 PM [IST]
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Over the recent months, the ink industry has facing numerous challenges in the area of raw material shortages, worsening supply chain conditions and raw material cost increases. Flint CPS Inks plans to implement selective price increases to assure sufficient coverage of raw material cost needed to ensure availability of raw materials that are essential for manufacturing high quality products.
The availability and cost of raw materials for oil based products like ink is likely to continue to be an issue, as the supplier base narrows and refocusses capacity and investments to other industry segments.
India and China are adopting stricter environmental regulations on the manufacturing of pigments and base chemicals, which is leading to factory closures, which, in turn, is reducing quantities available and therefore increasing costs.
In addition, although the price of oil is comparatively stable, refining capability for the solvents we use is more restricted leading to upward cost pressure.
Transport costs are also rising, partially reflecting problems in obtaining drivers, but also through truck utilisation challenges due to lower customer transit volumes.
Michael Podd, chief procurement officer, Flint CPS Inks, said, “Flint CPS Inks continues to manage the increasingly uncertain raw material situation through our established contracted priority supply of key raw materials.”
“We also decrease our expenses annually through labour cost leadership, but in some fields it is impossible to completely mitigate these cost hikes, especially in a market that is seeing reduced demand,” he added.
Fredrik Broman, the company’s EMEA Web business director, said, “Over the course of the last couple of years, ink manufacturers have seen significant raw material cost increases. These have, so far, been absorbed and only to a very moderate extent been passed into the supply chain. However to ensure we maintain high levels of product quality and service, it has become necessary to increase customer prices.”
“Flint CPS Inks will work closely with our customers to manage through this price increase. They can be assured that they will continue to benefit from our preferred status with suppliers, which makes the company best positioned to meet customer needs without sacrificing quality,” stated Steve Dryden, chief executive officer, Flint CPS Inks.
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