07.14.22
1-23-37 Edobori, Nishi-Ku
Osaka 550-0002 Japan
Phone: +81-6-6447-5847
Fax: +81-6-6447-5849
http://www.inx.co.jp/
E-mail: intl-sales@inx.co.jp
Sales: $1.569 billion (¥172,289 million in printing ink and graphic arts); $1.653 billion (¥181,487 million) consolidated.
Major Products: Commercial offset (sheetfed, heatset and newspaper offset inks); gravure inks for flexible packaging; flexo inks for flexible packaging, corrugated carton and paper bag; metal decorating inks and coatings; UV/EB inks for sheetfed, flexible packaging and metal decorating; inkjet inks, toners and coatings.
Key Personnel: Kotaro Morita, chairman; Yoshiaki Ueno, representative director, president and CEO; Masaki Nakamura, director and senior managing executive officer; Hitoshi Nakamura, director and senior managing executive officer; Toshihiko Fukunaga, director and managing executive officer
Number of Employees: 4,766 (consolidated)
Comments: Sakata INX and its subsidiary, INX International Ink Co., enjoyed a very successful year in 2021, with sales up 12.4% with the increase virtually across the range of its products.
“Although Sakata INX’s sales of commercial printing ink - including newspaper ink - were sluggish due to digitization and the COVID-19 pandemic, sales of packaging ink did well due to the stay-at-home order and global economic activities recovery,” said Sakata INX GM Katsuya Tanaka.
Tanaka noted that price revisions in the US and Asia also contributed to the increase in sales.
“Digital and specialty products showed recovery with inkjet ink and toner sales due to economic activities resumption,” said Tanaka. “The demand for pigment dispersions for liquid crystals remained firm from the prior year, which resulted in increased sales. Profit wise, there was only a slight increase as raw material prices increased worldwide, and mostly in the US. This was caused by the supply chain disruptions and deterioration in the balance of supply and demand resulting from the resumption of economic activities.”
John Hrdlick, INX International’s president and CEO, reported that INX International’s sales were very strong.
“Our leading growth markets included metal decorating, solvent packaging, energy curable and digital,” Hrdlick said. “Most of the growth was organic with our existing customers, who added facilities and equipment and saw their business expand. The majority of our business is packaging and those customers remained very busy throughout last year. I think the new normal has not been determined yet, and we are all trying to adjust.”
Still, the severe chain supply chain problems and ongoing raw material price increases hampered INX’s ability to build new business.
“It continues to be an uncomfortable situation,” Hrdlick observed. “Despite the strong top line growth and our own price increases to the market, we were not able to stay ahead of the significant and relentless increases we were faced with. The second half of 2021 was particularly difficult, but we finished the year with some momentum despite the circumstances.”
Tanaka reported that packaging and metal deco sales were highlights.
“Packaging ink sales grew steadily as higher growth was achieved in some regions, compared to before the COVID-19 pandemic,” said Tanaka. “As far as packaging ink customers are concerned, many of them are performing well due to demand growth resulting from the resumption of economic activities after the COVID-19 pandemic. Our sales of metal deco ink were also strong as demand for aluminum cans increased due to its high recyclability and low environmental impact. By acquiring A.M. Ramp & Co. GmbH (RUCO) in 2020, it promoted our restructuring of the Europe segment.”
Tanaka said that sustainability is an area of opportunity for Sakata INX.
“In 2021, we formulated and launched a long-term vision aimed at achieving sales goals for 2030,” said Tanaka. “By expanding our existing business and taking on the challenge of adding new businesses, we are focused on strengthening our Environment, Social and Governance (ESG) and sustainability initiatives. Currently, we are advancing a variety of internal reforms and new initiatives to achieve our targets.”
Hrdlick noted capital improvement projects that were completed this past year.
“We completed the expansion of our Lebanon, OH plant with a new warehouse addition and reactor installation,” Hrdlick said. “Our ongoing project of reinventing the Dunkirk, NY facility continues its various stages. Last year we completed the Water Manufacturing expansion and digital manufacturing department modification. We also began installing and operating new equipment in Dunkirk to add to our metal division capacity needs. The implementation of our new strategies and goals progressed very well and those efforts are gaining momentum halfway through 2022.”
As for raw material sales and logistics issues, the rest of 2022 will likely see more price increases all around.
“Unfortunately, raw material price increases continue to be a major concern with almost quarterly increases,” said Hrdlick. “We’ve been told these increases will continue for the rest of the year. Various material shortages and delays continue, and while freight logistics seem to have improved, it hasn’t been consistent. Increased inventories and expedited freight costs continue to be a concern since they are related to these issues.”
For Sakata INX and INX International, the first half of 2022 continue to show growth, but the specter of further raw material issues remains in the forefront.
“Sales have been growing worldwide, mainly in packaging ink, and surpassing levels from the last two years,” said Tanaka. “On the other hand, the cost of ink is starting to rise. This is due to the sharp rise in crude oil prices caused by the Russia-Ukraine conflict and soaring personnel costs of global inflation. Although we have been making price revisions of our products, profits have declined compared to the same period of the previous fiscal year.”
“INX International sales remain very strong and we are continuing our growth. However, our overall results are tracking similar to the second half results from last year,” said Hrdlick.
“Based on the information I have, the raw material costs, supply and logistics challenges will remain with us into 2023 and possibly longer,” Hrdlick added. “I think we will have a better idea in the next 60 days of how our year will end. Raw materials have the biggest impact on our business and it remains as the most significant concern.”
“Although sales are steadily rising due to active demand and the expansion of environmentally friendly inks, raw materials and other costs are increasing more sharply. Hence, the current situation is more difficult than our initial assumption,” said Tanaka. “Since the situation in Ukraine is extremely difficult to forecast, it is hard to predict the second half of 2022.”
Osaka 550-0002 Japan
Phone: +81-6-6447-5847
Fax: +81-6-6447-5849
http://www.inx.co.jp/
E-mail: intl-sales@inx.co.jp
Sales: $1.569 billion (¥172,289 million in printing ink and graphic arts); $1.653 billion (¥181,487 million) consolidated.
Major Products: Commercial offset (sheetfed, heatset and newspaper offset inks); gravure inks for flexible packaging; flexo inks for flexible packaging, corrugated carton and paper bag; metal decorating inks and coatings; UV/EB inks for sheetfed, flexible packaging and metal decorating; inkjet inks, toners and coatings.
Key Personnel: Kotaro Morita, chairman; Yoshiaki Ueno, representative director, president and CEO; Masaki Nakamura, director and senior managing executive officer; Hitoshi Nakamura, director and senior managing executive officer; Toshihiko Fukunaga, director and managing executive officer
Number of Employees: 4,766 (consolidated)
Comments: Sakata INX and its subsidiary, INX International Ink Co., enjoyed a very successful year in 2021, with sales up 12.4% with the increase virtually across the range of its products.
“Although Sakata INX’s sales of commercial printing ink - including newspaper ink - were sluggish due to digitization and the COVID-19 pandemic, sales of packaging ink did well due to the stay-at-home order and global economic activities recovery,” said Sakata INX GM Katsuya Tanaka.
Tanaka noted that price revisions in the US and Asia also contributed to the increase in sales.
“Digital and specialty products showed recovery with inkjet ink and toner sales due to economic activities resumption,” said Tanaka. “The demand for pigment dispersions for liquid crystals remained firm from the prior year, which resulted in increased sales. Profit wise, there was only a slight increase as raw material prices increased worldwide, and mostly in the US. This was caused by the supply chain disruptions and deterioration in the balance of supply and demand resulting from the resumption of economic activities.”
John Hrdlick, INX International’s president and CEO, reported that INX International’s sales were very strong.
“Our leading growth markets included metal decorating, solvent packaging, energy curable and digital,” Hrdlick said. “Most of the growth was organic with our existing customers, who added facilities and equipment and saw their business expand. The majority of our business is packaging and those customers remained very busy throughout last year. I think the new normal has not been determined yet, and we are all trying to adjust.”
Still, the severe chain supply chain problems and ongoing raw material price increases hampered INX’s ability to build new business.
“It continues to be an uncomfortable situation,” Hrdlick observed. “Despite the strong top line growth and our own price increases to the market, we were not able to stay ahead of the significant and relentless increases we were faced with. The second half of 2021 was particularly difficult, but we finished the year with some momentum despite the circumstances.”
Tanaka reported that packaging and metal deco sales were highlights.
“Packaging ink sales grew steadily as higher growth was achieved in some regions, compared to before the COVID-19 pandemic,” said Tanaka. “As far as packaging ink customers are concerned, many of them are performing well due to demand growth resulting from the resumption of economic activities after the COVID-19 pandemic. Our sales of metal deco ink were also strong as demand for aluminum cans increased due to its high recyclability and low environmental impact. By acquiring A.M. Ramp & Co. GmbH (RUCO) in 2020, it promoted our restructuring of the Europe segment.”
Tanaka said that sustainability is an area of opportunity for Sakata INX.
“In 2021, we formulated and launched a long-term vision aimed at achieving sales goals for 2030,” said Tanaka. “By expanding our existing business and taking on the challenge of adding new businesses, we are focused on strengthening our Environment, Social and Governance (ESG) and sustainability initiatives. Currently, we are advancing a variety of internal reforms and new initiatives to achieve our targets.”
Hrdlick noted capital improvement projects that were completed this past year.
“We completed the expansion of our Lebanon, OH plant with a new warehouse addition and reactor installation,” Hrdlick said. “Our ongoing project of reinventing the Dunkirk, NY facility continues its various stages. Last year we completed the Water Manufacturing expansion and digital manufacturing department modification. We also began installing and operating new equipment in Dunkirk to add to our metal division capacity needs. The implementation of our new strategies and goals progressed very well and those efforts are gaining momentum halfway through 2022.”
As for raw material sales and logistics issues, the rest of 2022 will likely see more price increases all around.
“Unfortunately, raw material price increases continue to be a major concern with almost quarterly increases,” said Hrdlick. “We’ve been told these increases will continue for the rest of the year. Various material shortages and delays continue, and while freight logistics seem to have improved, it hasn’t been consistent. Increased inventories and expedited freight costs continue to be a concern since they are related to these issues.”
For Sakata INX and INX International, the first half of 2022 continue to show growth, but the specter of further raw material issues remains in the forefront.
“Sales have been growing worldwide, mainly in packaging ink, and surpassing levels from the last two years,” said Tanaka. “On the other hand, the cost of ink is starting to rise. This is due to the sharp rise in crude oil prices caused by the Russia-Ukraine conflict and soaring personnel costs of global inflation. Although we have been making price revisions of our products, profits have declined compared to the same period of the previous fiscal year.”
“INX International sales remain very strong and we are continuing our growth. However, our overall results are tracking similar to the second half results from last year,” said Hrdlick.
“Based on the information I have, the raw material costs, supply and logistics challenges will remain with us into 2023 and possibly longer,” Hrdlick added. “I think we will have a better idea in the next 60 days of how our year will end. Raw materials have the biggest impact on our business and it remains as the most significant concern.”
“Although sales are steadily rising due to active demand and the expansion of environmentally friendly inks, raw materials and other costs are increasing more sharply. Hence, the current situation is more difficult than our initial assumption,” said Tanaka. “Since the situation in Ukraine is extremely difficult to forecast, it is hard to predict the second half of 2022.”
