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FLINT ANNOUNCES INK SURCHARGES

The Flint Group’s publication division announced a surcharge for its ink products effective with March 1, 2022 deliveries. The company cited disruptions in raw materials and increases in energy tariffs.

From the company:

Tony Lord President of Flint Group Commercial Publication Web Division said, “The first responsibility of a supplier is to meet its obligations to its customers for provision of required volumes to maintain the integrity of the supply chain. To meet this requirement we have been successful in responding to the post pandemic’s unprecedented disruption in both global raw material and energy markets by ensuring both product and energy availability to meet our customers’ demands. This has, however, been at previously unparalleled price levels across our entire portfolio of raw materials and manufacturing locations”.

Lord further stated “Regrettably the hoped for stabilisation in both raw material availability and pricing has failed to materialise so far in 2022 with products remaining scarce and their pricing continuing to escalate accordingly. This, coupled with the exponential increase in energy tariffs, has created a situation where current selling price levels for our products are simply not sustainable. To respond to this sudden rise in costs we feel the sensible approach is to avoid a general price increase and apply a monthly surcharge whilst awaiting further market developments. To this end, effective for deliveries from March 1st 2022, surcharges to recover these recent cost increases will be applied across our entire publication ink portfolio so that we can maintain supply to our customers”.

Lord continued, “it is of course a matter of deep regret this surcharge is needed and we understand the difficult printing markets that currently prevail and can assure all of our valued customers that as the situation normalises, we will seek to reflect this development by reducing or eliminating the surcharge applied.

Move Follows Flint Packaging Price Hikes Announced February 8:

Flint Group Packaging will increase the prices of all its packaging products sold by the Flexible Packaging, Paper & Board and Narrow Web businesses.

Further to multiple announcements advising of the worsening market conditions throughout 2021, the group has continued to weather unprecedented raw material, packaging, energy and freight cost increases. Escalating costs continue to be seen across all the above categories with no sign of relief in the foreseeable future.

Doug Aldred, Chief Commercial Officer – Flint Group Packaging said, “The security of supply is our number one priority. Due to our extensive global network and efficiency programmes, we are able to mitigate a significant portion of cost and supply risk. However, we continue to witness tightening supply and exponential cost increases. Despite implementing an extensive range of efficiency programs to mitigate these conditions, we are reluctantly compelled to raise prices.”

The company will seek a price increase and an increase in temporary surcharges during Quarter One or as contracts allow.

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