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Sun Chemical To Increase North America Packaging Ink Prices In 2008
Northlake, III., USA
- December 04, 2007 -- Faced
with increases in the costs of raw materials and the impact of recent
events in the global supply chain, Sun Chemical will raise prices 8
percent for packaging inks in North America effective January 1, 2008.
Despite Sun Chemical’s consistent efforts to improve productivity,
Richard B. Pettifor, President, North American Packaging, Sun Chemical,
stated that the aggressive action by the Chinese government to address
environmental non-compliance in the chemical industry has resulted in
supply shortages—driving the need for price increases in North America.
Additionally, the efforts by the Chinese to curb environmental impact,
coupled with their policy that eliminates export VAT tax refunds, have
led to sharp pigment and resin cost increases.
Pettifor also cited the rapid rise in global prices for chemicals and
metals used in the production of inks, coatings, and pigments, and the
significant rise in oil prices combined with the current weakness of
the U.S. dollar, as market drivers for the need to increase packaging
ink prices. Furthermore, a shortage of key raw materials for pigments,
a shrinking supplier base, and solvent pricing impacted by alternative
uses for ethanol, along with increases in other costs such as energy,
freight, and labor, are all contributors.
“Though we continue to improve our efficiencies and reduce internal
costs through the Six Sigma and Lean processes, these measures cannot
totally compensate for current rising raw material and energy costs,”
Pettifor said. “We will maintain our commitment to technology
leadership by developing new value-added products that can help our
customers reduce their operating costs and grow their businesses.”
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 over $3 billion, Sun
Chemical has over 11,000 employees supporting customers around the
world. The Sun Chemical Group of companies includes such established
names as Coates, Hartmann, Kohl & Madden, 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.; Slough, England;
and Weesp, the Netherlands. For more information, please visit our Web
site at www.sunchemical.com. |