In a statement released by Flint Group, the global ink manufacturer lays out the ongoing challenges it’s facing sourcing many of the key ingredients required for many of its packaging and label ink products.
“The raw material markets have been very challenging since the beginning of the year. Many key material and feedstock producers began the year with depleted inventories and reduced capacities,” notes the company.
“After living through a number of years of very low margins, and then making the difficult choices of shutting locations, these producers found with a leaner operation and with supply matching much closer to demand it was possible to improve margins. Consequently, as demand picked up raw material producers as well as ink producers were forced to increase prices.
“In the last quarter of 2010 as well as in 2011 it appears that raw materials will remain a concern, resulting in further issues with extended lead times, short shipments and severe shortages, thus driving costs up further,” says Flint in its release.
The company cites specific materials where supplies are short and thus prices are rising, including: solvents, titanium dioxide (TiO2), nitrocellulose, acrylic acid and acrylated materials.
According to Flint, “the rising costs have not been – and will not be – the primary concern. A number of materials will continue to be short in supply and will be difficult to obtain.”
The company indicates that several raw materials have already been placed on allocation. “With its worldwide supply and logistics operations Flint Group has however – with very few exceptions – been able to obtain the materials necessary to ensure continuous supply to its customers”, says Jan Paul van der Velde in the release, he is senior vice president procurement and executive management team member of Flint Group.
“Despite this strength of a global, multinational company the continuous lack of some key raw materials for packaging and narrow web inks may require product adaptations.”
He ensures that the company’s customers will be kept in the loop and made aware if any technology modifications will be required to accommodate changes in the ink composition.
