International Paint is to initiate product price rises as global raw material costs spiral.
“During 2010 the cost of raw materials critical to the manufacture of both our marine and protective coatings’ product ranges increased significantly”, said Paul Westcott, Marine & Protective Coatings Commercial Director.
“We have attempted to minimize the impact on our customers for as long as possible by leveraging our buying power and driving internal cost saving measures.”
“Unfortunately the increase in costs shows no sign of abatement and therefore regrettably we now have little choice but to initiate a programme of product price rises.”
International said epoxy resins, titanium dioxide, solvents, copper as well as other metals were among the raw materials most affected.
“We are acutely aware that all industries are under tremendous cost pressure, however, in the current climate of incessant raw material price rises we have little choice but to reluctantly pass some of these increases onto our customers,” said Westcott.
Meanwhile, leading protective coatings supplier Hempel also announced general product price increases.
These price changes are driven by raw materials suppliers increasing prices as well as shortages of some raw materials and rising energy costs.
Hempel is making as many cost-saving measures as possible, but in order to continue to supply the same quality products and service to its customers in these tough financial times, the company must increase its product prices.
In the past year, the average price of raw materials used in coating manufacturing has increased significantly - anywhere from 10 to 60 per cent for key raw materials, such as epoxy, titanium dioxide, industrial metals.
Furthermore, the substantial increases in crude oil prices will continue to negatively influence the cost of petrochemical-based products industry-wide.
Published : February 24, 2011
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