Sun Chemical to implement surcharges
Published: 25 March 2020 | No comments yet
Sun Chemical has acquired 100% of the shares of Sensient Imaging Technologies
Sun Chemical is to implement surcharges affecting its solvent liquid inks in Europe, effective 1 April, 2020.
The company noted that the current situation is causing ‘considerable pressure’ on the supply chain of alcohols, in particular ethanol. With supply already limited in the second half of 2019 due to a bad crop of raw materials increasing the demand for fuel ethanol, the coronavirus (COVID-19) outbreak has caused further increased demand for pharmaceutical and sanitised products, with governments considering allocation measures. While availability is reducing globally, prices are increasing quickly.
In order to secure its supplies for the coming months, Sun Chemical has accepted higher prices to comply with current market conditions. The risk always exists that governments may seize the products for health emergency reasons, a situation that is beyond Sun Chemical’s control the company added.
As of 1 April, 2020, a solvent surcharge will be applied to Sun Chemical’s ink and varnish prices. Surcharges will vary depending on product types. Sun Chemical will communicate specific increases directly with its customers.
Nicolas Bétin, director, product strategy, EMEA at Sun Chemical, said, ‘The pressure on the alcohol supply chain is causing an abrupt rise in raw material costs and unfortunately requires us to increase customer prices.
‘We will continue to work with our supply chain partners to manage and minimise the impact on our customers.’
The UK printing industry has already united to call upon the UK Government to ensure the supplies of ethanol, n-propanol and other raw materials are maintained for the ink and printing industries.
Sun Chemical is ‘working hard’ to mitigate rising costs by implementing internal improvement programmes, and by maintaining very close communication with suppliers and industry associations to ensure it is fully aligned to the latest procurement situation. The surcharges will last until the situation normalises.