03.15.19
35 Waterview Blvd.
Parsippany, NJ 07054
Phone: (973) 404-6000
Fax: (973) 404-6001
www.sunchemical.com
Sales: Together with DIC, Sun Chemical has annual sales of more than $7.5 billion in printing inks, coatings and supplies, pigments, polymers, liquid compounds, solid compounds, and application materials worldwide. North American Ink Sales: $1.6 billion (Ink World estimate).
Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks; label and narrow web inks; toner; inkjet materials; adhesives for packaging; overprint varnishes; specialty coatings; effect inks; flexographic printing plates; digital artwork file management; color software and brand color management; security inks and coatings; organic colorants for inks, plastics, paints, coatings and cosmetics; liquid compounds for printed circuits, printed electronics, solar modules, and digital inkjet printing; solid compounds for automotive components and glossy interiors as well as industrial, construction and other electrical components; adhesives for commercial and industrial electronics; magnetic tapes for plastic cards; and degasification modules for inkjet printing.
Key Personnel: Myron Petruch, president and CEO, Sun Chemical and executive officer, DIC; Chris Parrilli, president, North American Inks; Fernando Tavara, president, Sun Chemical Latin America; Mehran Yazdani, president, Advanced Materials and Performance Pigments; Greg Hayes, group managing director, Europe Northern Region and Africa; Robert Fitzka, group managing director, Europe Central Region; Kevin Michaelson, VP and CFO; Carlo Musso, group managing director, Europe Southern Region and Middle East; John McKeown, senior VP, chief administration officer; Russell Schwartz, chief technology officer; Jeffrey Shaw, chief supply chain officer; Brian Panczyk, chief manufacturing officer; Felipe Mellado, chief marketing officer and Board member; James Van Horn, general counsel and secretary.
Number of Employees: DIC has more than 20,000 worldwide.
Operating Facilities: Sun Chemical has 176 subsidiaries across 63 countries.
Comments: Sun Chemical had an average year in 2018, as the company continues to grow its packaging business while finding opportunities in new markets.
“We were fairly consistent with our expectations,” Chris Parrilli, Sun Chemical North American Inks president, said. “Our core business is more packaging related, and we will continue to see growth in packaging as we continue to invest our money into research and application experts. We continue to see a decline in publication, particularly in coldset, where we see a significant decline. Fortunately, we have specialty areas where we are making good progress.”
While Sun Chemical is growing, raw materials costs and availability remain a concern. Parrilli said that the volatility of costs and supply concerns of major raw materials, from photoinitiators to pigments and even crude oil, is a critical issue that is impacting the bottom line. The higher costs forced Sun Chemical North America to announce price increases on all inks, coatings and consumables twice in 2018, but that didn’t begin to cover the higher costs.
“One caveat is raw material costs,” Parrilli said. “We expected some material increase in 2018, but nowhere did we anticipate the dramatic rise, and it is very difficult to pass those increases along on a timely basis. Our customers believe us, but they have their own struggles.
“The material market is very dynamic,” he added. “The photoinitiators market is unstable. Some pigments will continue to cause us issues because of capacity curtailment, especially pigments and intermediates coming out of China. Crude oil is anyone’s guess. We saw a 50% increase in costs, and they remain volatile. Carbon black is under pressure.”
Parrilli said that the ultimate goal is to maintain critical products for Sun Chemical’s customers, but it is a challenge.
“Our priority is securing our supply and keeping our customers running, and we have been successful at doing that, but that comes at a price,” he noted. “The cost to us has been significant. We were able to recoup some of our cost increases, but it makes us a little uneasy heading into 2019. Certainly, we don’t expect to see the same cost dynamics that we saw in 2018, but we are not sitting here thinking that it will be a relatively calm, stable environment. We are making sure our customers are secure, making it as transparent as possible, looking at our supplier base, long-term supply agreements and opportunities to continue to look at our products, the materials that are in them, and alternatives. Technology is a big part of what we do.”
Higher transportation costs and tariffs are two other issues impacting all industries, and ink companies are no exception. Parrilli noted that higher transportation costs aren’t going to settle anytime soon.
“It is simple supply and demand economics with drivers,” said Parrilli. “The cost increase really surprised me, as it was anywhere from 20% to 30%. You’re trying to cut shipments, and you have to make sure you send the trucks out as full as you can. It really takes significant supply chain planning to put together the most cost-effective method.”
As for tariffs, “We are starting to see the 10% additional cost of materials, and if the tariffs rise to 25%, it would be a significant cost to all of us in the ink industry,” Parrilli observed.
In major personnel news, Myron Petruch was named president and CEO of Sun Chemical as of Jan. 1, 2019. Petruch served as president of Sun Chemical Performance Pigments and GM of the Pigments Products Division since 2008 and was named an executive officer of DIC Corporation, Sun Chemical’s parent company, in 2017. Petruch succeeds Rudi Lenz, who is now vice chairman of the board at Sun Chemical.
“Myron’s background and track record of success make him the outstanding individual for this very important position at Sun Chemical,” said Masayuki Saito, chairman of the board, Sun Chemical. “On behalf of DIC and Sun Chemical, we are grateful to Rudi for his accomplishments and fine work as president and CEO and we wish Myron every success in the future leading Sun Chemical.”
Parrilli noted that 2018 was his first year as president of Sun Chemical North American Inks, and he sees excellent opportunities ahead for the company.
“I am continuing to build our new team and integrate them into our organization,” he noted. “We are looking at how we grow outside of our traditional markets. We are always looking for the right acquisitions to drive growth, and we are continuing to assimilate Joules Angstrom’s people, their application expertise and technology into our organization. Coatings and adhesives are also a great opportunity, which we can match with our ink technologies.
“I am cautiously optimistic,” Parrilli concluded. “The packaging market will continue to grow, and hopefully raw material costs will stabilize. Packaging is our biggest market; Sun Chemical has a very strong market share, and we understand our customers’ needs and continue to deliver on them, whether it is less inventory, less waste, run at faster speed, developing new color technology and various other projects. There is a big effort around sustainability and all that goes with it and I believe we are at the forefront with technologies and solutions for the customer. Our focus is always on the customer.”
Parsippany, NJ 07054
Phone: (973) 404-6000
Fax: (973) 404-6001
www.sunchemical.com
Sales: Together with DIC, Sun Chemical has annual sales of more than $7.5 billion in printing inks, coatings and supplies, pigments, polymers, liquid compounds, solid compounds, and application materials worldwide. North American Ink Sales: $1.6 billion (Ink World estimate).
Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks; label and narrow web inks; toner; inkjet materials; adhesives for packaging; overprint varnishes; specialty coatings; effect inks; flexographic printing plates; digital artwork file management; color software and brand color management; security inks and coatings; organic colorants for inks, plastics, paints, coatings and cosmetics; liquid compounds for printed circuits, printed electronics, solar modules, and digital inkjet printing; solid compounds for automotive components and glossy interiors as well as industrial, construction and other electrical components; adhesives for commercial and industrial electronics; magnetic tapes for plastic cards; and degasification modules for inkjet printing.
Key Personnel: Myron Petruch, president and CEO, Sun Chemical and executive officer, DIC; Chris Parrilli, president, North American Inks; Fernando Tavara, president, Sun Chemical Latin America; Mehran Yazdani, president, Advanced Materials and Performance Pigments; Greg Hayes, group managing director, Europe Northern Region and Africa; Robert Fitzka, group managing director, Europe Central Region; Kevin Michaelson, VP and CFO; Carlo Musso, group managing director, Europe Southern Region and Middle East; John McKeown, senior VP, chief administration officer; Russell Schwartz, chief technology officer; Jeffrey Shaw, chief supply chain officer; Brian Panczyk, chief manufacturing officer; Felipe Mellado, chief marketing officer and Board member; James Van Horn, general counsel and secretary.
Number of Employees: DIC has more than 20,000 worldwide.
Operating Facilities: Sun Chemical has 176 subsidiaries across 63 countries.
Comments: Sun Chemical had an average year in 2018, as the company continues to grow its packaging business while finding opportunities in new markets.
“We were fairly consistent with our expectations,” Chris Parrilli, Sun Chemical North American Inks president, said. “Our core business is more packaging related, and we will continue to see growth in packaging as we continue to invest our money into research and application experts. We continue to see a decline in publication, particularly in coldset, where we see a significant decline. Fortunately, we have specialty areas where we are making good progress.”
While Sun Chemical is growing, raw materials costs and availability remain a concern. Parrilli said that the volatility of costs and supply concerns of major raw materials, from photoinitiators to pigments and even crude oil, is a critical issue that is impacting the bottom line. The higher costs forced Sun Chemical North America to announce price increases on all inks, coatings and consumables twice in 2018, but that didn’t begin to cover the higher costs.
“One caveat is raw material costs,” Parrilli said. “We expected some material increase in 2018, but nowhere did we anticipate the dramatic rise, and it is very difficult to pass those increases along on a timely basis. Our customers believe us, but they have their own struggles.
“The material market is very dynamic,” he added. “The photoinitiators market is unstable. Some pigments will continue to cause us issues because of capacity curtailment, especially pigments and intermediates coming out of China. Crude oil is anyone’s guess. We saw a 50% increase in costs, and they remain volatile. Carbon black is under pressure.”
Parrilli said that the ultimate goal is to maintain critical products for Sun Chemical’s customers, but it is a challenge.
“Our priority is securing our supply and keeping our customers running, and we have been successful at doing that, but that comes at a price,” he noted. “The cost to us has been significant. We were able to recoup some of our cost increases, but it makes us a little uneasy heading into 2019. Certainly, we don’t expect to see the same cost dynamics that we saw in 2018, but we are not sitting here thinking that it will be a relatively calm, stable environment. We are making sure our customers are secure, making it as transparent as possible, looking at our supplier base, long-term supply agreements and opportunities to continue to look at our products, the materials that are in them, and alternatives. Technology is a big part of what we do.”
Higher transportation costs and tariffs are two other issues impacting all industries, and ink companies are no exception. Parrilli noted that higher transportation costs aren’t going to settle anytime soon.
“It is simple supply and demand economics with drivers,” said Parrilli. “The cost increase really surprised me, as it was anywhere from 20% to 30%. You’re trying to cut shipments, and you have to make sure you send the trucks out as full as you can. It really takes significant supply chain planning to put together the most cost-effective method.”
As for tariffs, “We are starting to see the 10% additional cost of materials, and if the tariffs rise to 25%, it would be a significant cost to all of us in the ink industry,” Parrilli observed.
In major personnel news, Myron Petruch was named president and CEO of Sun Chemical as of Jan. 1, 2019. Petruch served as president of Sun Chemical Performance Pigments and GM of the Pigments Products Division since 2008 and was named an executive officer of DIC Corporation, Sun Chemical’s parent company, in 2017. Petruch succeeds Rudi Lenz, who is now vice chairman of the board at Sun Chemical.
“Myron’s background and track record of success make him the outstanding individual for this very important position at Sun Chemical,” said Masayuki Saito, chairman of the board, Sun Chemical. “On behalf of DIC and Sun Chemical, we are grateful to Rudi for his accomplishments and fine work as president and CEO and we wish Myron every success in the future leading Sun Chemical.”
Parrilli noted that 2018 was his first year as president of Sun Chemical North American Inks, and he sees excellent opportunities ahead for the company.
“I am continuing to build our new team and integrate them into our organization,” he noted. “We are looking at how we grow outside of our traditional markets. We are always looking for the right acquisitions to drive growth, and we are continuing to assimilate Joules Angstrom’s people, their application expertise and technology into our organization. Coatings and adhesives are also a great opportunity, which we can match with our ink technologies.
“I am cautiously optimistic,” Parrilli concluded. “The packaging market will continue to grow, and hopefully raw material costs will stabilize. Packaging is our biggest market; Sun Chemical has a very strong market share, and we understand our customers’ needs and continue to deliver on them, whether it is less inventory, less waste, run at faster speed, developing new color technology and various other projects. There is a big effort around sustainability and all that goes with it and I believe we are at the forefront with technologies and solutions for the customer. Our focus is always on the customer.”
