Flint Group Australia is considering a local price rise after the company announced a global increase for packaging, narrow web and sheetfed customers.
The Luxembourg-based company announced prices would go up between four and seven percent from April 3. “The increases will vary by product group and our business managers will be in contact with their customers over the next few days to discuss the details," said Doug Aldred, president of the packaging, narrow web and sheetfed division.
This follows a global price increase on February 22, which resulted in part from a factory fire in Finland that destroyed stocks of titanium oxide (TiO2), which is used in pigments as 'titanium white'. “Flint Group is working tirelessly to mitigate the costs of these dramatic increases in raw materials being passed to our valued customers by investigating alternative sources of supply and committing capital to efficiency projects. However, in such volatile conditions the Group has no option but to review the sustainability of current pricing models and adjust accordingly,” Aldred said.
Australia escaped the increase in February, and Hus Kani, business manager narrow web at Flint Group Australia, says the company has not yet formed an opinion on whether the local market will be subject to this rise. “We’re reviewing our position locally, nothing’s decided one way or another yet," Kani said.
A Flint Group press release issued this week attributed the latest rise to a prolonged period of significant raw material cost inflation, force majeure announcements and changes in the supply outlook of raw materials for printing inks and varnishes.
The security of supply for many ink-related raw materials has recently worsened (in addition to the TiO2 crisis), thus expediting a further general price increase announcement to cover the rising cost landscape, the release said.