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Sun Chemical Europe Raises Prices on Packaging Inks
Watford, UK
- November 25, 2004 -- Sun Chemical has announced price increases of 3 to 7 percent on all packaging inks and coatings, that were effective Nov 1, according to Michael Griem ,Sun Chemical Corporate Vice President Europe. These increases include all inks and coatings for flexible packaging sold in Europe.
"Petrochemicals are the key ingredients in many of our products, and there has been a steady rise in the cost of all our raw materials, which have spiked in recent months with the run-up in oil prices. Other leading factors contributing to rising costs have been environmental compliance, freight, packaging and inflationary operating cost increases", Griem said.
"In addition, we also have seen prolonged shortages on some key materials such as titanium dioxide, resins and acrylic acid-based derivatives where producers have either stopped or cut back production. Meanwhile, many products are on allocation and there is no price relief in sight."
At the same time, he added, Sun Chemical continues to maintain the industry's highest levels of local service throughout Europe, while investing heavily in world-class research and development to develop innovative technology that offers packaging printers significant competitive advantage.
"These price increases only partially offset the impact of rising costs," Griem continued. "It has been four years since Sun Chemical has had any form of general price increase. During that time, Sun Chemical has improved its productivity and made capital investments to reduce costs so our products and our customers would remain competitive. However, rapidly escalating costs have overrun these efforts to such an extent that we cannot adequately reinvest in our business, nor sustain a minimum acceptable level of return on capital employed."
About Sun Chemical
Sun Chemical, the world’s largest producer of printing inks and pigments, is a leading provider of materials to packaging, publication, coatings, plastics, cosmetics, and other industrial markets. With annual sales approaching $4 billion, Sun Chemical has over 12,000 employees supporting customers around the world. The Sun Chemical Group of companies includes such well-known names as Coates Lorilleux, Gibbon, Hartmann, Kohl & Madden, Swale, Usher-Walker, Rycoline and US Ink.
Sun Chemical Corporation in the U.S. and Sun Chemical Limited in England are subsidiaries of Sun Chemical Group B.V., the Netherlands. Sun Chemical has headquarters in Parsippany, New Jersey, U.S.A.; Watford, England; and Weesp, the Netherlands. For more information, please visit our Web site at www.sunchemical.com.
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