Raw Material Challenges Lead Flint Group CPS to Increase Prices
Michael Podd, Flint Group CPS chief procurement officer and senior vice president global sales, identified the following areas of major challenge:
- The Global Carbon Industry. New global environmental legislation being introduced by the International Maritime Organization (IMO) in 2020 regarding sulphur content in marine fuel oil MARPOL will significantly and adversely impact carbon production going forward. The low sulphur content oils are the primary raw material feed stocks used by the carbon manufacturers to produce carbon black supplied into the printing industry. As a result of the new MARPOL legislation these low sulphur oil feedstocks are now being sourced by the global marine fuel industry, significantly increasing the demand and price of these raw material feedstocks. This has resulted in price increases from all of our carbon suppliers in the range of 20% to 30%.
- U.S. tariffs against China. These unprecedented tariffs affect the pigment prices in offset and gravure inks. Those recently imposed tariffs have increased to 25%.
- Increased freight costs. “The trucking industry has faced driver shortages for years,” notes Podd. “The situation has worsened over time, and is exacerbated now by equipment shortages and increased fuel costs. All modes of transportation have increased in cost.”
As a result, Flint Group will announce price increases on black offset inks globally, and all publication gravure inks in North America. Increase amounts vary depending on product lines and technologies based on the raw materials make-up. The specific increases will be communicated regionally by our sales leadership teams.
“Flint Group will work closely with our customers to manage through this price increase and keep them informed,” says Podd, “And our preferred status with suppliers helps customers rest assured that Flint Group is best positioned to meet their ink orders without sacrificing quality.”
The preceding press release was provided by a company unaffiliated with In-plant Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of In-plant Impressions.