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Siegwerk NAFTA’s Response to On-going Material Disruptions
Following the economic downturn in 2008, many raw material suppliers reduced operating capacity and personnel. In some instances, suppliers permanently shut down plants to accommodate the economic downturn. Inventories were reduced dramatically over 2009. Due to the increase in demand at the end of 2009 and early 2010, many industries were not positioned to adequately supply and service their customers. In addition, many suppliers were not sufficiently convinced of the sustainability of the increases, and have consequently hesitated in restarting previously idled production capacity.
Compounding the problem, numerous cases of force majeure, closures due to environmental reasons, and labor strikes exacerbated an already tight market which has led to serious reductions in supply and product allocations. The following is a brief summary of the situation for each primary material stream:
Pigments:
Resins:
Additives:
Solvents:
As a consequence of these market and supply developments, all raw material prices are, without exception, under extreme upward price pressure. Most significant increases are to be found in the area of resins, followed by pigments, solvents, and additives.
Siegwerk is well aligned with its global suppliers to minimize supply disruptions and is continuing to focus technical efforts on finding viable, quality products to sustain customer satisfaction.
Siegwerk greatly appreciates its customers’ continued business and patience during these challenging times.
About Siegwerk
Siegwerk is a world-leading supplier of printing ink for packaging and publications. Our international family business of 4,000 employees strives to exceed customers’ expectations of quality, reliability and support. In 2009, we have generated revenues of $1 billion USD. Our headquarters is located in Siegburg near Cologne (Germany). www.siegwerk.com
Media contact:
Becky Cornelius
Marketing Manager – NAFTA
Phone: +001 515-471-2100
Fax: +001 515-471-2202
E-mail: becky.cornelius(at)siegwerk.com