Leading protective coatings supplier Hempel announces 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 reported that 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.
“Looking ahead, we foresee continued raw material price inflation as well as shortage in availability of key raw materials,” said Klaus Møller, Hempel’s Group Vice President Marketing. “This is extremely unfortunate. However, we are going to great lengths to optimise our own processes so that we can continue to supply the same high-value coatings and services our customers have come to expect.”