AkzoNobel Powder Coatings Europe West business today announced that it will increase prices. Prices will increase by between 8.5 and 19%. This rise is in response to continued shortages in raw material supplies and the associated increase in raw material costs.
Gordon MacLeman, Managing Director of the Sub Business Unit Powder Coatings Europe West explains: “Since the beginning of last year we began witnessing strong increases in the price of a broad range of raw materials used in the production of powder coatings. During the last couple of months this situation has dramatically deteriorated in a manner which could not be foreseen”. Depending upon the technology base of the product, the raw materials prices have increased by between 20 and 70%. This is not expected to improve as demand in rapidly developing economies increases.”
MacLeman continues, “This is an unprecedented situation in Europe, and many powder coatings companies are experiencing difficulty in maintaining full supply. AkzoNobel Powder Coatings enjoys a strong global position which has so far enabled the consistent supply of product but even we are now beginning to face real problems with the availability of raw materials.”
“As the largest supplier of powder coatings in Europe, we are extremely conscious of our responsibility to our customers, especially whilst the market is still suffering the effects of the recent recession” states Gordon MacLeman. “In light of this we have worked hard over the last two years to aggressively attack our own cost base. This has resulted in radical restructuring. Over the last 18 months we have downsized a number of factories and have closed 2 production units, as well as taking significant job losses in the non-manufacturing part of the business. Whilst we will continue to save cost in all business areas we have no choice but to recover some of the many raw material increases.”
MacLeman continues, “Unfortunately we believe we will see continued shortages and raw material price increases for a number of years to come. We must act now to protect our customers’ supplies and to ensure the survival of our company and the industry.”
Customers will be informed individually of these increases in coming weeks.