20th June 2011
AkzoNobel Powder Coatings’ Europe West business has announced that it will increase prices as per July 1st 2011. This rise is in response to continued shortages in supply and the associated ongoing increases in purchase costs.
Gordon MacLeman, Managing Director of the Sub Business Unit Powder Coatings Europe West explains: “Following on the strong price increases at the end of 2010 and beginning of 2011, we are now seeing significant further increases in our purchasing cost. This looks set to continue for the foreseeable future and there are no indications that this situation will improve. Demand for raw materials is still increasing especially in some rapidly developing economies and this is resulting in prolonged price escalation globally.”
MacLeman continues, “As a long term participant in this industry, we have never witnessed a similar situation with continued - and ever more frequent - increases in our purchasing cost. However, our main concern is the availability of raw materials. For AkzoNobel it continues to be our primary responsibility to ensure supply to our customers. We benefit from a strong global network which has so far enabled us to purchase the necessary raw materials, although late deliveries and short supply have caused some disruption to our supply chain.”
“We have taken drastic steps to reduce our costs and offset this tidal wave of increases, but the scale of these increases has been so large that we cannot absorb these costs whilst at the same time protecting our longer term future in this industry” states MacLeman. “Although we continue to aggressively drive down costs, we have no option but to pass on a part of these increases to our customers.”
MacLeman continues, “These are really unprecedented times for our industry. This level of increase in purchasing cost was literally unimaginable until very recently. Unfortunately we believe we will see continued shortages, and consequently increases in our purchase cost for some considerable time to come. Against that background, we have to take steps to protect our customers’ supplies and protect the future of our company and the industry.”
Customers will be informed of these increases in coming weeks.
Gordon MacLeman
General Manager Europe West