Due to the continued raw material cost pressure Flint Group has to further increase prices of all packaging and narrow web inks in North America effective 1 May 2011.
In light of the repetitive and continuing raw material cost increases since January, it is necessary to increase the price of inks and coatings. Water and solvent based products will increase 8 percent, with the exception of white which increases 10 percent. All energy cured products will increase 5 percent. Violet 23 continues to be in short supply with rising costs. It will be addressed on a customer by customer basis. We will continue to communicate with our customers individually regarding the overall impact of the price increases on their specific product portfolio.
The ink industry has found the last two years, and particularly the last six months, very challenging. Material shortages, government policies, environmental concerns, decreased feedstock availability, and competition from other industries for available materials have come together to push costs to unprecedented levels.
Susan Kuchta, vice president North American Packaging and Narrow Web commented: "Raw materials increased significantly in the last half of 2010, again in January 2011, and still again in the last 30 days. During the last few months we have seen multiple increases on individual items and continuing tight supply. Our first responsibility to our customers is to focus on continuity of supply and to produce high quality products. We have worked closely in the past, and will continue to work closely in the future, with our customers as we minimize the impact of these increases with alternative raw materials, replacement products where relevant and our ongoing focus on productivity and cost containment initiatives."