Sun Chemical Europe says rising oil prices and shortages of raw materials are driving a second round of price hikes.
Increases in the prices for the commercial, packaging and industrial markets will be implemented in Europe, Africa and the Middle East, according to the company.
Europe follows US lead
Sun Chemical’s US arm has already announced a number of price increases, bumping up the price of some of its performance pigments as much as 35 per cent back in July.
The current round of hikes in the company’s European division will raise prices between 5 and 15 per cent and will be implemented from September 1.
Along with the continued high price of oil and natural gas, the company cites a number of governmental policies in China and global raw material shortages as being behind the decision.
“We are working proactively with our suppliers and we are taking action to keep costs to a minimum. However, given the speed and scale of these rises, it is necessary to increase prices for the commercial, packaging and industrial markets,” said Sun Chemical Europe president David Meldram.
He also highlighted the widespread nature of the problem.
“Increased costs are having a significant impact on most industries in Europe, and our industry is no exception.”
Corporate vice president Felipe Mellado added that the company will attempt to assist its clients through this challenging time with support and advice.
Price increases are widespread
The company is certainly not alone in its struggles against increasing raw materials and energy costs.
The summer has seen significant price increases from major suppliers, both of raw ingredients and cosmetics actives.
In addition, a number of finished products manufacturers, including Procter and Gamble, have announced that they too will be increasing prices in order to protect margins in the coming months.