This trend is primarily driven by a continued imbalance of supply and demand of feedstocks on a worldwide scale. The speed and impact by which prices for raw materials increased in the period 2010-2011 has never been seen before. Siegwerk’s expectations that the pressure on raw material prices would relieve early 2012 have unfortunately not come true, and the coimpany’s leaders know by now that at least until the end of this calendar year, upward pressure will continue.
As a result of the continuous increase of raw material costs some products have turned unprofitable. Therefore Siegwerk will have to significantly increase prices of individual products in the EMEA region (Europe, Middle East, Africa). The impact will depend on the customer’s individual product portfolio and differ from business unit to business unit.
In those cases where the market is not capable of accepting higher prices, certain articles will no longer be offered.