David Savastano, Editor05.18.20
RadTech 2020 was held in Orlando, FL from March 9-11. The coronavirus, or COVID-19, was already a huge concern, but there was no talk yet of curfews and business shutdowns.
Some conference postponements and/or cancellations were already being announced, most notably the American Coatings Show and FESPA being postponed. The tragic death tolls and massive numbers of infected people across the globe had yet to become a daily reality.
So much has happened since then. drupa 2020, the world’s largest printing show, was postponed until 2021. The 2020 NAPIM Convention, scheduled for Arizona in April, was canceled. The same goes for Interpack, the Flexo Forum and virtually every other conference and trade show before fall 2020.
NAPIM executive director John Copeland and NAPIM president Jim Leitch issued the following statement upon the cancellation of the NAPIM Convention:
“This was not an easy decision for us to make. However, it is our obligation to do what is in the best interests of all our attendees and event sponsors.”
There have been many changes since then. For example, there have been shortages of key supplies, such as hand sanitizers, and a number of ink companies have helped to fill the vacuum (see sidebars).
Price increases have been issued due to rising costs of solvents and other ingredients. Meanwhile, ink companies and key suppliers are implementing social distancing and other best practices to keep their employees safe.
“Our hearts go out to everyone around the globe who has been negatively impacted by this outbreak in so many ways, including the loss of family and friends,” said John Hrdlick, president and CEO of INX International. “We are keeping them in our thoughts and are hopeful COVID-19 runs its course as soon as possible.”
What Ink Companies are Doing
First and foremost, ink companies are an essential business and are remaining open. However, they are emphasizing safety for their employees, having as many people as possible work from home while following social distancing guidelines. Of course, manufacturing ink has to be done on site, which requires safety and health procedures being implemented.
Siegwerk CEO Herbert Forker noted that his company has implemented strict hygiene measures and has asked employees to avoid meeting and working in large groups.
“Our employees’ safety is our utmost concern,” Forker said. “Employees are encouraged to use virtual meeting tools as an alternative and to work from home whenever it makes sense and their job responsibilities allow.
“Fortunately, many of Siegwerk’s production facilities around the world are decentralized in their layout, with many separate facilities for different functions and categories of work. This allows for easy separation of people and more easily allows for working in smaller groups,” he added.
Michael Spoerl, head of global marketing and corporate communication, MHM Holding GmbH, reported that hubergroup is doing well.
“First of all, we are very glad that all of our employees are healthy,” Spoerl said. “We set up a bunch of precaution measures at hubergroup to make sure our employees and customers stay safe. We are proud that they all stick to those rules conscientiously.”
Deanna Klemesrud, global marketing director – brand and promo, packaging inks & resins, Flint Group, said that the health and safety of Flint Group’s employees remain paramount.
Flint Group has implemented strict hygiene precautions such as social distancing between employees; disinfecting of shared equipment and use of individual personal protective equipment, such as gloves and masks which are not shared between employees; temperature testing before entering any Flint Group facility; and staff who are not essential for daily production and shipping of products being required to work from home.
“To help prevent the spread of COVID-19 infection, the staff at two Tokyo offices including the head office, for the most part, will be working from home from April 1 to May 6,” Masayuki Kano, operating officer and GM of General Affairs Department, Toyo Ink SC Holdings Co., Ltd., said. “Operations in China have largely returned to normal levels. On the other hand, we had to suspend business activities in India, Malaysia, the Philippines and other areas where governments have imposed restrictions on citizens or businesses.”
“INX management teams are continually monitoring the situation and are committed to taking appropriate actions for the safety of our employees, vendors, suppliers and others dealing with our products or personnel,” Hrdlick reported. “Consequently, we have instituted travel, meeting, delivery and shipment policies to best address concerns based on our current knowledge.
“Production is especially critical right now to meet the sudden increased demand from consumers and retailers,” said Hrdlick added. “Our customers require inks and chemical products for all forms of food packaging, medical labels and vital communication materials defined as printed media. The manufacture of printing ink is a fundamental chemical process to prevent widespread shortages of these essential products around the globe.”
Gary Seward, managing director, Pulse Roll Label Products, said that Pulse Roll Label remains open for business, is fully operational and complying with all the necessary measures to fight COVID-19.
“Employee health and safety is our highest priority and we have strict hygiene and social distancing measures in place to keep our staff safe whilst they do an outstanding job to keep the supply chain moving,” Seward added. “These are unprecedented times, but the teamwork and commitment shown by our staff have been truly exceptional. We are working closely with our customers, suppliers and partners to ensure that we get through this challenging period together.”
Memjet reported that the sudden outbreak of COVID-19 drove numerous changes in its operations and overall plans, but the company remains optimistic about how Memjet is navigating through these unclear waters and is in good shape in terms of working capital and liquidity to manage the possible global impacts. Memjet added that it continues to support its OEM partners and their end-users.
Forker noted that globally, Siegwerk is involved in community-based projects at many sites, and cited one example.
“A request was made for support with storing and shipping personal protective equipment (PPE) for distribution to retirement homes and hospitals in the country,” Forker said. “Between 200,000 and 300,000 protective masks, glasses and gloves have been warehoused for packaging prior to distribution. Siegwerk employees have the opportunity to volunteer with the logistics once the critical COVID-19 medical suppliers have arrived. The team will follow prescribed social distancing and wear the appropriate PPE gear themselves.”
Packaging Ink Surges
As people eat in due to restaurants being closed, food packaging inks are growing in demand.
“Globally, Siegwerk has seen a strong increase in demand for its packaging inks and varnishes, which is continuing to roll out across all global markets,” Forker noted.
“For now, global inventory and order levels at Siegwerk are sufficient to support normal operating levels and the risk of business disruption caused by disruptions in supply remains manageable,” Forker added. “To reduce panic buying by customers, Siegwerk constantly monitors customer orders, which are placed outside of ordinary business and buying patterns in order to be able to supply all of its customers.”
Klemesrud noted that E-commerce is increasing, as is a demand for both corrugated and flexible packaging inks and coatings.
“Flexible packaging demand is healthy as consumers are looking for effective packaging to ensure hygiene standards are maintained and food remains fresh while shoppers are not able to make frequent trips into supermarkets,” Klemesrud added. “It is too early to tell whether these consumer behaviors are a temporary reflection of social mobility restrictions or whether they will form part of a longer-term evolution of consumer buying habits.”
Kano said that demand for shelf-stable items like frozen foods and cereals has been skyrocketing in the US as well as for instant noodles throughout Southeast Asia.
“As a result, shipments of liquid packaging inks have been robust,” Kano observed. “In Japan, shipments of gravure inks are also booming due to the increased demand for packaging in line with the rising demand for ready-made meals.”
“We can register a higher demand for flexible packaging for the food industry,” Spoerl said. “Our Italian colleagues even increased the factory output in this challenging time.”
Pulse Roll Label Products reported that it has been experiencing unparalleled demand for its narrow web printing inks, varnishes and coatings during the COVID-19 pandemic. Most of its customers print labels and packaging for food, healthcare, pharmaceuticals and other essential consumer goods. As an ink manufacturer, the company continues to play a crucial part in the packaging and label printing supply chain to ensure that supermarket shelves remain well-stocked.
Memjet noted that as people comply with orders to stay at home, the demand for goods through E-commerce sites has soared. More brands are taking steps to ensure the package engages consumers and enables a relationship-building opportunity., and inkjet technology allows print providers to have better control over their inventory.
Supply Chain and Pricing Issues
With key shortages abounding, particularly with solvents, ink companies found their own prices increasing. For example, in the case of hand sanitizers, isopropyl alcohol is essential, and it is hard to get (see sidebar).
“Over these last several weeks, we continue to monitor the extent of the novel coronavirus (COVID-19) around the world,” said Jeffrey Shaw, chief supply chain officer, Sun Chemical. “The potential supply chain impact of the coronavirus around the world is vast and unpredictable. Nonetheless, we stay committed to managing our supply chain in a very proactive and comprehensive manner. The situation remains volatile and can change very quickly.”
“Even though the supply chain situation is challenging, at hubergroup it is still stable thanks to our good infrastructure and our effective task force management,” Spoerl said. “So far, from a supply chain perspective, we don’t have to face any noticeable impact regarding our raw materials. However, we are facing an increase in prices for solvents and some pigments.”
Klemesrud reported that Flint Group is seeing some disruptions to its raw material supply chain and continues to work with its suppliers and customers to mitigate these issues as they arise.
“We monitor the situation around the world daily with global team conference calls on a regular basis as required,” added Klemesrud. “We are seeing price increases on solvents and other key raw materials.
“Certain pigment categories are seeing tightening market conditions primarily due to the recently extended lockdown in India. However, as of the date of these responses, we maintain healthy stocks of all pigments and continue to collaborate with our suppliers to manage risk and cost,” added Klemesrud. “Freight, especially air freight, remains a challenge. All logistical challenges are addressed by our global supply chain and procurement teams who interact and collaborate each and every day to secure the most effective transportation modes.”
“We are very cognizant of the impact we have on the overall supply chain,” Hrdlick concluded. “Thanks to our vendors, INX manufacturing facilities are adequately stocked with raw materials and based on communications with them, we expect the supply from China to resume well before we have inventory concerns. We will continue to keep our customers updated during this process and are committed to making sure supply disruptions are minimized.”
In this dangerous time, the chemical industry is in an important position, with the ability to bring its expertise in formulation and production to help provide solutions to various aspects of COVID-19.
Polymeric Group, an inkjet and screen ink and coating specialist headquartered in Kansas City, MO, is an exceptional example of a company using its knowledge and skills to benefit their community. Using its inventory, formulation experience and manufacturing expertise, Polymeric’s team developed and is producing hand sanitizers to donate to area healthcare facilities. The company has set aside a portion of its manufacturing capacity to produce its hand sanitizers.
Terry Amerine, VP sales and marketing for Polymeric, said that the company quickly recognized the need for supplies, and saw an opportunity to help
their community.
“We all realize our nation is facing an unprecedented crisis concerning COVID-19, and our healthcare providers are running short of critically needed supplies to keep them safe as they treat those fighting the virus,” Amerine said.
One possibility was creating hand sanitizers, and Polymeric’s R&D team knew they had the materials on hand. It was a matter of creating the formula, and on their own time, the team came up with a stronger hand sanitizer and disinfectant.
“Our R&D team realized that we utilize materials in our normal business that could actually exceed the FDA regulations for a hand sanitizer and disinfectant,” Amerine noted. “We were fortunate that one of our QC team members makes soaps and bath salts as part of her home business. So, they all came in this past weekend, on their own time, and worked to develop the formulations.”
Amerine noted that the biggest challenge was raw materials.
“The biggest advantage we had was the fact that we had all the necessary raw materials in stock,” he added. “That is also the biggest challenge in continuing to supply the product as we are struggling to get the necessary materials. Our R&D team typically develops ink and coatings for a wide variety of applications – so, not to be immodest, but formulating a hand sanitizer is relatively easy by comparison.”
Once the first batch was made, finding where to donate the hand sanitizers was easy.
“We were fortunate that our R&D manager had a college friend who was connected to the supply chain for this type of product,” Amerine said. “They were able to quickly put us in touch with the companies who could get the product where it was needed the most. The response has been ‘we will take all you can make and how soon can you get it here.’
“We have been able to get some of the hand sanitizers to local medical facilities as well as grocery stores and other businesses that are pretty much on the ‘front line,’” Amerine added. “The remaining amount we did sell to a distribution company that is better able to get it to the various ‘hot spot’ areas much more quickly than we could ourselves. We hope that we can continue to supply the product but it will come down to finding the materials to do so. Sadly, they will probably limit how much we can make. We will make as much as we can, given the availability of materials.”
The COVID-19 pandemic is causing devastation worldwide. Among the concerns has been the shortage of disinfectants and hand sanitizers. To fill this gap, some ink manufacturers are using their formulation and manufacturing expertise to produce materials to stem the flow of COVID-19.
Headquartered in Tamm, Germany, Marabu GmbH & Co KG switched a portion of its digital ink production to manufacture hand and surface disinfectants to help the fight against the COVID-19 pandemic. The sanitizers meet World Health Organization (WHO) standards. Marabu has produced more than 2,000 liters of sanitizers, donating 500 liters to RKH Hospital in Ludwigsburg, near Stuttgart, and another 500 liters to its employees.
“With this donation, we want to help those people who are working selflessly and beyond their limits to provide outstanding care to our fellow citizens,” Marabu CEO York Boeder said.
“Faced with the current, very difficult market for disinfectant and protective equipment, we are very grateful for any help,” said Alexander Tsongas, director of communication at RKH. “It is wonderful that companies in the region are doing their part in the fight against COVID-19.”
The company has donated a large part of its production to regional hospitals, as well as 2,000 protective masks and hundreds of crayons.
Boeder said that the idea came up from a Marabu employee whose wife works at the regional hospital.
“He then told our management that there is an absolute lack of disinfectant,” Boeder added. “And since Marabu, as a chemical company, has the necessary resources and equipment, it was decided that we would switch part of the production to disinfectant. There is a shortage not only in the hospital but everywhere in Germany. At the moment we have permission to sell the disinfectant only in Germany. So, we can now actively participate in the fight against COVID-19.”
Marabu quickly adapted its expertise to formulate and produce the hand sanitizers.
“On the production side, we essentially only had to change organizational things (create space and capacities, organize work processes and train employees),” Boeder reported. “The necessary hardware is available in-house. Through close coordination between the purchasing, development, product management, product safety, production and planning departments, we were able to deliver within six days. It was produced according to the specifications of the WHO.
“Due to the currently difficult availability of raw materials, especially ethanol, we were able to produce 2,000 liters of disinfectant in a first step,” Boeder said. “Of this, we have distributed 500 liters to our own employees and 500 liters will be donated to the Ludwigsburg Clinic. We have allocated the remaining quantities to our customers.”
Boeder anticipates that Marabu will continue to produce hand sanitizers for local organizations for the foreseeable future.
“The production changeover is designed in such a way that we will be producing disinfectants over a longer period of time from now on,” added Boeder. “It has not yet been decided whether we will continue to do so after COVID-19.”
When illnesses and deaths began mounting from the COVID-19 pandemic, a number of ink manufacturers began to look at ways they could play a role in helping to combat the illness. Inkjet, Inc., Willis, TX, an industrial printer supplier and industrial ink manufacturer, saw the opportunity to produce hand sanitizers.
The company’s laboratory started producing hand sanitizers at the end of March, following FDA guidelines, and has been supplying hand sanitizers to hospitals and healthcare facilities, police, firefighters and first responders, industrial supply and transportation companies. The company is offering the liquid sanitizer in 8-ounce spray bottles as a case of 6 (limit two); 32-ounce bottles as a case of nine; 1-gallon jugs as a case of four; 5-gallon pails; and 55-gallon drums.
Patricia Quinlan, InkJet, Inc.’s chairwoman and owner, had the idea after reading and seeing that states were starting to shut down non-essential businesses due to the coronavirus.
“The focus, at first was, how can I keep my business open and my people employed and supporting their families?” Quinlan said. “That was immediately followed by the fact that we, as a company, use the same chemicals to make ink that is required to make hand sanitizer, especially our food-grade inks. We had space and required FDA and GMP compliance in place, as well as a TTB permit. Then, the bigger picture of helping other small businesses locally and protecting the supply chain locally was the next thought, followed by protecting the supply chain nationally.”
InkJet, Inc. quickly used its expertise to formulate and produce the hand sanitizers.
“It was a quick ‘pivot’,” Quinlan noted. “Within 72 hours from making and testing the first batch, we were selling it. Our facility has the capacity to produce large quantities of hand sanitizer and we are eager to help during these challenging times. We utilized the same room we use to make food-grade ink, adjusted the alcohol and chemicals according to the FDA regulations and since we already had an e-commerce site, we were able to quickly add it and start selling it.”
While InkJet, Inc. has the materials, a bigger challenge was finding containers for the sanitizers.
“The raw materials have not been an issue, but some of the bottle configurations have been more challenging,” said Quinlan. “We already sell ink in 32-ounce bottles as well as 5-gallon pails and 55-gallon drums. However, we had not sourced 8-ounce spray bottles or 1-gallon jugs in the past. There have already been times when we ran out of those, but more keep coming in.”
Distributing the hand sanitizers is the easy part.
“The majority of the orders are for businesses that do indeed keep the supply chain moving, like transportation and trucking companies as well as a lot of the front line, essential businesses,” Quinlan added. “Within our first week, we also drove around to the local hospitals, fire stations and police stations and donated hand sanitizer. Now that we are in a good place with production and order fulfillment, we are currently reaching out to our customer base and beyond.
“We, as a company, have a core value that says, ‘Build the Tribe,’ which means that we must support and help one another, and this is a time to extend that out to the community and our country,” Quinlan concluded.
As the world battles COVID-19, people are trying to find ways to make up for shortages in key items. Hand sanitizers are very difficult, if not virtually impossible, to find on shelves. In the case of hand sanitizers, isopropyl alcohol is essential, and it is hard to get. The graphic from SPG Global shows how pricing has been affected.
Turns out that the packaging ink industry is having a difficult time as well, and ink companies announced price increase for solvent-based inks as of April 1, 2020:
• On March 26, 2020, Sun Chemical announced that it is implementing surcharges on solvent ink and varnishes in Europe. In particular, Sun Chemical cited ethanol as a serious concern.
“The current situation is causing considerable pressure on the supply chain of alcohols – in particular, ethanol,” the company stated. “With supply already limited in the second half of 2019 due to a bad crop of raw materials increasing the demand for fuel ethanol, the novel coronavirus (COVID-19) has caused further increased demand for pharmaceutical and sanitized products, with governments considering allocation measures.
“While availability is reducing globally, prices are increasing quickly,” Sun Chemical added. “To secure its supplies for the coming months, Sun Chemical has accepted higher prices to comply with current market conditions.”
“The pressure on the alcohol supply chain is causing an abrupt rise in raw material costs and unfortunately requires us to increase customer prices,” said Nicolas Bétin, director Product Strategy EMEA, Sun Chemical. “We will continue to work with our supply chain partners to manage and minimize the impact on our customers.”
• On March 27, 2020, the Doneck Network announced solvent surcharges on solvent-based flexo and gravure inks.
“Due to the coronavirus pandemic, there is a relevant shortage of solvents, especially ethanol and isopropyl alcohol, as the latter are used in pharmaceutical and disinfection products,” Doneck’s team reported.
• On March 30, 2020, Siegwerk implemented immediate surcharges on all solvent-based inks and varnishes in Europe, Middle East and Africa (EMEA).
“Certain raw materials, such as alcohol, have been impacted in terms of price and availability as a result of the novel coronavirus (COVID-19),” Siegwerk noted. “This is due to the increased need for products with disinfectant properties and the potential for government restrictions or allocation measures. Demand for these products, in particular ethanol, continues to outstrip supply, which has led to reduced global availability and rapid price increases.
“In addition, due to the industry shutdowns in China and India, disruptions to freight and logistics, and many other isolated supply disruptions, Siegwerk is not always able to avoid price increases without increased risk of supply disruption,” Siegwerk added.
• Also on March 30, 3020, Flint Group Packaging Inks Europe announced its own solvent surcharges on all solvent-based inks and coatings in Europe.
“The progressively worsening global economic situation caused by the coronavirus (COVID-19) pandemic is placing untenable pressure on the supply chain for packaging inks and coatings,” Flint Group announced. “Supply across a number of raw material categories, notably solvents, is tightening and costs are rising quickly as the market becomes more constrained. Additionally, freight constraints are resulting in higher costs across all transportation modes.”
Company officials noted that they are doing what they can. Flint Group, for example, noted that they have many employees who have been impacted by coronavirus.
“The worsening global situation caused by COVID-19 is having a significant impact on our business, yet our facilities continue to deliver consistent output despite major supply chain disruptions,” said Kim Melander, VP and GM Packaging Inks Europe. “However, this output comes at a significant cost which to date we have borne alone. We remain optimistic that this surcharge is a temporary measure.”
Siegwerk emphasized the importance of the ink industry in our everyday lives.
“In order to ensure the continued supply of Siegwerk products, in every country in which we operate we have secured, or are in the process of securing, the official governmental confirmation of being part of the critical infrastructure industry as a key supplier to the food and pharma segments,” said Mike van Breugel, director global purchasing for Siegwerk. “Critical infrastructure industries have a special responsibility to maintain normal operations to deliver specific products associated with the safe distribution of food and medical products.”
Some conference postponements and/or cancellations were already being announced, most notably the American Coatings Show and FESPA being postponed. The tragic death tolls and massive numbers of infected people across the globe had yet to become a daily reality.
So much has happened since then. drupa 2020, the world’s largest printing show, was postponed until 2021. The 2020 NAPIM Convention, scheduled for Arizona in April, was canceled. The same goes for Interpack, the Flexo Forum and virtually every other conference and trade show before fall 2020.
NAPIM executive director John Copeland and NAPIM president Jim Leitch issued the following statement upon the cancellation of the NAPIM Convention:
“This was not an easy decision for us to make. However, it is our obligation to do what is in the best interests of all our attendees and event sponsors.”
There have been many changes since then. For example, there have been shortages of key supplies, such as hand sanitizers, and a number of ink companies have helped to fill the vacuum (see sidebars).
Price increases have been issued due to rising costs of solvents and other ingredients. Meanwhile, ink companies and key suppliers are implementing social distancing and other best practices to keep their employees safe.
“Our hearts go out to everyone around the globe who has been negatively impacted by this outbreak in so many ways, including the loss of family and friends,” said John Hrdlick, president and CEO of INX International. “We are keeping them in our thoughts and are hopeful COVID-19 runs its course as soon as possible.”
What Ink Companies are Doing
First and foremost, ink companies are an essential business and are remaining open. However, they are emphasizing safety for their employees, having as many people as possible work from home while following social distancing guidelines. Of course, manufacturing ink has to be done on site, which requires safety and health procedures being implemented.
Siegwerk CEO Herbert Forker noted that his company has implemented strict hygiene measures and has asked employees to avoid meeting and working in large groups.
“Our employees’ safety is our utmost concern,” Forker said. “Employees are encouraged to use virtual meeting tools as an alternative and to work from home whenever it makes sense and their job responsibilities allow.
“Fortunately, many of Siegwerk’s production facilities around the world are decentralized in their layout, with many separate facilities for different functions and categories of work. This allows for easy separation of people and more easily allows for working in smaller groups,” he added.
Michael Spoerl, head of global marketing and corporate communication, MHM Holding GmbH, reported that hubergroup is doing well.
“First of all, we are very glad that all of our employees are healthy,” Spoerl said. “We set up a bunch of precaution measures at hubergroup to make sure our employees and customers stay safe. We are proud that they all stick to those rules conscientiously.”
Deanna Klemesrud, global marketing director – brand and promo, packaging inks & resins, Flint Group, said that the health and safety of Flint Group’s employees remain paramount.
Flint Group has implemented strict hygiene precautions such as social distancing between employees; disinfecting of shared equipment and use of individual personal protective equipment, such as gloves and masks which are not shared between employees; temperature testing before entering any Flint Group facility; and staff who are not essential for daily production and shipping of products being required to work from home.
“To help prevent the spread of COVID-19 infection, the staff at two Tokyo offices including the head office, for the most part, will be working from home from April 1 to May 6,” Masayuki Kano, operating officer and GM of General Affairs Department, Toyo Ink SC Holdings Co., Ltd., said. “Operations in China have largely returned to normal levels. On the other hand, we had to suspend business activities in India, Malaysia, the Philippines and other areas where governments have imposed restrictions on citizens or businesses.”
“INX management teams are continually monitoring the situation and are committed to taking appropriate actions for the safety of our employees, vendors, suppliers and others dealing with our products or personnel,” Hrdlick reported. “Consequently, we have instituted travel, meeting, delivery and shipment policies to best address concerns based on our current knowledge.
“Production is especially critical right now to meet the sudden increased demand from consumers and retailers,” said Hrdlick added. “Our customers require inks and chemical products for all forms of food packaging, medical labels and vital communication materials defined as printed media. The manufacture of printing ink is a fundamental chemical process to prevent widespread shortages of these essential products around the globe.”
Gary Seward, managing director, Pulse Roll Label Products, said that Pulse Roll Label remains open for business, is fully operational and complying with all the necessary measures to fight COVID-19.
“Employee health and safety is our highest priority and we have strict hygiene and social distancing measures in place to keep our staff safe whilst they do an outstanding job to keep the supply chain moving,” Seward added. “These are unprecedented times, but the teamwork and commitment shown by our staff have been truly exceptional. We are working closely with our customers, suppliers and partners to ensure that we get through this challenging period together.”
Memjet reported that the sudden outbreak of COVID-19 drove numerous changes in its operations and overall plans, but the company remains optimistic about how Memjet is navigating through these unclear waters and is in good shape in terms of working capital and liquidity to manage the possible global impacts. Memjet added that it continues to support its OEM partners and their end-users.
Forker noted that globally, Siegwerk is involved in community-based projects at many sites, and cited one example.
“A request was made for support with storing and shipping personal protective equipment (PPE) for distribution to retirement homes and hospitals in the country,” Forker said. “Between 200,000 and 300,000 protective masks, glasses and gloves have been warehoused for packaging prior to distribution. Siegwerk employees have the opportunity to volunteer with the logistics once the critical COVID-19 medical suppliers have arrived. The team will follow prescribed social distancing and wear the appropriate PPE gear themselves.”
Packaging Ink Surges
As people eat in due to restaurants being closed, food packaging inks are growing in demand.
“Globally, Siegwerk has seen a strong increase in demand for its packaging inks and varnishes, which is continuing to roll out across all global markets,” Forker noted.
“For now, global inventory and order levels at Siegwerk are sufficient to support normal operating levels and the risk of business disruption caused by disruptions in supply remains manageable,” Forker added. “To reduce panic buying by customers, Siegwerk constantly monitors customer orders, which are placed outside of ordinary business and buying patterns in order to be able to supply all of its customers.”
Klemesrud noted that E-commerce is increasing, as is a demand for both corrugated and flexible packaging inks and coatings.
“Flexible packaging demand is healthy as consumers are looking for effective packaging to ensure hygiene standards are maintained and food remains fresh while shoppers are not able to make frequent trips into supermarkets,” Klemesrud added. “It is too early to tell whether these consumer behaviors are a temporary reflection of social mobility restrictions or whether they will form part of a longer-term evolution of consumer buying habits.”
Kano said that demand for shelf-stable items like frozen foods and cereals has been skyrocketing in the US as well as for instant noodles throughout Southeast Asia.
“As a result, shipments of liquid packaging inks have been robust,” Kano observed. “In Japan, shipments of gravure inks are also booming due to the increased demand for packaging in line with the rising demand for ready-made meals.”
“We can register a higher demand for flexible packaging for the food industry,” Spoerl said. “Our Italian colleagues even increased the factory output in this challenging time.”
Pulse Roll Label Products reported that it has been experiencing unparalleled demand for its narrow web printing inks, varnishes and coatings during the COVID-19 pandemic. Most of its customers print labels and packaging for food, healthcare, pharmaceuticals and other essential consumer goods. As an ink manufacturer, the company continues to play a crucial part in the packaging and label printing supply chain to ensure that supermarket shelves remain well-stocked.
Memjet noted that as people comply with orders to stay at home, the demand for goods through E-commerce sites has soared. More brands are taking steps to ensure the package engages consumers and enables a relationship-building opportunity., and inkjet technology allows print providers to have better control over their inventory.
Supply Chain and Pricing Issues
With key shortages abounding, particularly with solvents, ink companies found their own prices increasing. For example, in the case of hand sanitizers, isopropyl alcohol is essential, and it is hard to get (see sidebar).
“Over these last several weeks, we continue to monitor the extent of the novel coronavirus (COVID-19) around the world,” said Jeffrey Shaw, chief supply chain officer, Sun Chemical. “The potential supply chain impact of the coronavirus around the world is vast and unpredictable. Nonetheless, we stay committed to managing our supply chain in a very proactive and comprehensive manner. The situation remains volatile and can change very quickly.”
“Even though the supply chain situation is challenging, at hubergroup it is still stable thanks to our good infrastructure and our effective task force management,” Spoerl said. “So far, from a supply chain perspective, we don’t have to face any noticeable impact regarding our raw materials. However, we are facing an increase in prices for solvents and some pigments.”
Klemesrud reported that Flint Group is seeing some disruptions to its raw material supply chain and continues to work with its suppliers and customers to mitigate these issues as they arise.
“We monitor the situation around the world daily with global team conference calls on a regular basis as required,” added Klemesrud. “We are seeing price increases on solvents and other key raw materials.
“Certain pigment categories are seeing tightening market conditions primarily due to the recently extended lockdown in India. However, as of the date of these responses, we maintain healthy stocks of all pigments and continue to collaborate with our suppliers to manage risk and cost,” added Klemesrud. “Freight, especially air freight, remains a challenge. All logistical challenges are addressed by our global supply chain and procurement teams who interact and collaborate each and every day to secure the most effective transportation modes.”
“We are very cognizant of the impact we have on the overall supply chain,” Hrdlick concluded. “Thanks to our vendors, INX manufacturing facilities are adequately stocked with raw materials and based on communications with them, we expect the supply from China to resume well before we have inventory concerns. We will continue to keep our customers updated during this process and are committed to making sure supply disruptions are minimized.”
In this dangerous time, the chemical industry is in an important position, with the ability to bring its expertise in formulation and production to help provide solutions to various aspects of COVID-19.
Polymeric Group, an inkjet and screen ink and coating specialist headquartered in Kansas City, MO, is an exceptional example of a company using its knowledge and skills to benefit their community. Using its inventory, formulation experience and manufacturing expertise, Polymeric’s team developed and is producing hand sanitizers to donate to area healthcare facilities. The company has set aside a portion of its manufacturing capacity to produce its hand sanitizers.
Terry Amerine, VP sales and marketing for Polymeric, said that the company quickly recognized the need for supplies, and saw an opportunity to help
their community.
“We all realize our nation is facing an unprecedented crisis concerning COVID-19, and our healthcare providers are running short of critically needed supplies to keep them safe as they treat those fighting the virus,” Amerine said.
One possibility was creating hand sanitizers, and Polymeric’s R&D team knew they had the materials on hand. It was a matter of creating the formula, and on their own time, the team came up with a stronger hand sanitizer and disinfectant.
“Our R&D team realized that we utilize materials in our normal business that could actually exceed the FDA regulations for a hand sanitizer and disinfectant,” Amerine noted. “We were fortunate that one of our QC team members makes soaps and bath salts as part of her home business. So, they all came in this past weekend, on their own time, and worked to develop the formulations.”
Amerine noted that the biggest challenge was raw materials.
“The biggest advantage we had was the fact that we had all the necessary raw materials in stock,” he added. “That is also the biggest challenge in continuing to supply the product as we are struggling to get the necessary materials. Our R&D team typically develops ink and coatings for a wide variety of applications – so, not to be immodest, but formulating a hand sanitizer is relatively easy by comparison.”
Once the first batch was made, finding where to donate the hand sanitizers was easy.
“We were fortunate that our R&D manager had a college friend who was connected to the supply chain for this type of product,” Amerine said. “They were able to quickly put us in touch with the companies who could get the product where it was needed the most. The response has been ‘we will take all you can make and how soon can you get it here.’
“We have been able to get some of the hand sanitizers to local medical facilities as well as grocery stores and other businesses that are pretty much on the ‘front line,’” Amerine added. “The remaining amount we did sell to a distribution company that is better able to get it to the various ‘hot spot’ areas much more quickly than we could ourselves. We hope that we can continue to supply the product but it will come down to finding the materials to do so. Sadly, they will probably limit how much we can make. We will make as much as we can, given the availability of materials.”
The COVID-19 pandemic is causing devastation worldwide. Among the concerns has been the shortage of disinfectants and hand sanitizers. To fill this gap, some ink manufacturers are using their formulation and manufacturing expertise to produce materials to stem the flow of COVID-19.
Headquartered in Tamm, Germany, Marabu GmbH & Co KG switched a portion of its digital ink production to manufacture hand and surface disinfectants to help the fight against the COVID-19 pandemic. The sanitizers meet World Health Organization (WHO) standards. Marabu has produced more than 2,000 liters of sanitizers, donating 500 liters to RKH Hospital in Ludwigsburg, near Stuttgart, and another 500 liters to its employees.
“With this donation, we want to help those people who are working selflessly and beyond their limits to provide outstanding care to our fellow citizens,” Marabu CEO York Boeder said.
“Faced with the current, very difficult market for disinfectant and protective equipment, we are very grateful for any help,” said Alexander Tsongas, director of communication at RKH. “It is wonderful that companies in the region are doing their part in the fight against COVID-19.”
The company has donated a large part of its production to regional hospitals, as well as 2,000 protective masks and hundreds of crayons.
Boeder said that the idea came up from a Marabu employee whose wife works at the regional hospital.
“He then told our management that there is an absolute lack of disinfectant,” Boeder added. “And since Marabu, as a chemical company, has the necessary resources and equipment, it was decided that we would switch part of the production to disinfectant. There is a shortage not only in the hospital but everywhere in Germany. At the moment we have permission to sell the disinfectant only in Germany. So, we can now actively participate in the fight against COVID-19.”
Marabu quickly adapted its expertise to formulate and produce the hand sanitizers.
“On the production side, we essentially only had to change organizational things (create space and capacities, organize work processes and train employees),” Boeder reported. “The necessary hardware is available in-house. Through close coordination between the purchasing, development, product management, product safety, production and planning departments, we were able to deliver within six days. It was produced according to the specifications of the WHO.
“Due to the currently difficult availability of raw materials, especially ethanol, we were able to produce 2,000 liters of disinfectant in a first step,” Boeder said. “Of this, we have distributed 500 liters to our own employees and 500 liters will be donated to the Ludwigsburg Clinic. We have allocated the remaining quantities to our customers.”
Boeder anticipates that Marabu will continue to produce hand sanitizers for local organizations for the foreseeable future.
“The production changeover is designed in such a way that we will be producing disinfectants over a longer period of time from now on,” added Boeder. “It has not yet been decided whether we will continue to do so after COVID-19.”
When illnesses and deaths began mounting from the COVID-19 pandemic, a number of ink manufacturers began to look at ways they could play a role in helping to combat the illness. Inkjet, Inc., Willis, TX, an industrial printer supplier and industrial ink manufacturer, saw the opportunity to produce hand sanitizers.
The company’s laboratory started producing hand sanitizers at the end of March, following FDA guidelines, and has been supplying hand sanitizers to hospitals and healthcare facilities, police, firefighters and first responders, industrial supply and transportation companies. The company is offering the liquid sanitizer in 8-ounce spray bottles as a case of 6 (limit two); 32-ounce bottles as a case of nine; 1-gallon jugs as a case of four; 5-gallon pails; and 55-gallon drums.
Patricia Quinlan, InkJet, Inc.’s chairwoman and owner, had the idea after reading and seeing that states were starting to shut down non-essential businesses due to the coronavirus.
“The focus, at first was, how can I keep my business open and my people employed and supporting their families?” Quinlan said. “That was immediately followed by the fact that we, as a company, use the same chemicals to make ink that is required to make hand sanitizer, especially our food-grade inks. We had space and required FDA and GMP compliance in place, as well as a TTB permit. Then, the bigger picture of helping other small businesses locally and protecting the supply chain locally was the next thought, followed by protecting the supply chain nationally.”
InkJet, Inc. quickly used its expertise to formulate and produce the hand sanitizers.
“It was a quick ‘pivot’,” Quinlan noted. “Within 72 hours from making and testing the first batch, we were selling it. Our facility has the capacity to produce large quantities of hand sanitizer and we are eager to help during these challenging times. We utilized the same room we use to make food-grade ink, adjusted the alcohol and chemicals according to the FDA regulations and since we already had an e-commerce site, we were able to quickly add it and start selling it.”
While InkJet, Inc. has the materials, a bigger challenge was finding containers for the sanitizers.
“The raw materials have not been an issue, but some of the bottle configurations have been more challenging,” said Quinlan. “We already sell ink in 32-ounce bottles as well as 5-gallon pails and 55-gallon drums. However, we had not sourced 8-ounce spray bottles or 1-gallon jugs in the past. There have already been times when we ran out of those, but more keep coming in.”
Distributing the hand sanitizers is the easy part.
“The majority of the orders are for businesses that do indeed keep the supply chain moving, like transportation and trucking companies as well as a lot of the front line, essential businesses,” Quinlan added. “Within our first week, we also drove around to the local hospitals, fire stations and police stations and donated hand sanitizer. Now that we are in a good place with production and order fulfillment, we are currently reaching out to our customer base and beyond.
“We, as a company, have a core value that says, ‘Build the Tribe,’ which means that we must support and help one another, and this is a time to extend that out to the community and our country,” Quinlan concluded.
As the world battles COVID-19, people are trying to find ways to make up for shortages in key items. Hand sanitizers are very difficult, if not virtually impossible, to find on shelves. In the case of hand sanitizers, isopropyl alcohol is essential, and it is hard to get. The graphic from SPG Global shows how pricing has been affected.
Turns out that the packaging ink industry is having a difficult time as well, and ink companies announced price increase for solvent-based inks as of April 1, 2020:
• On March 26, 2020, Sun Chemical announced that it is implementing surcharges on solvent ink and varnishes in Europe. In particular, Sun Chemical cited ethanol as a serious concern.
“The current situation is causing considerable pressure on the supply chain of alcohols – in particular, ethanol,” the company stated. “With supply already limited in the second half of 2019 due to a bad crop of raw materials increasing the demand for fuel ethanol, the novel coronavirus (COVID-19) has caused further increased demand for pharmaceutical and sanitized products, with governments considering allocation measures.
“While availability is reducing globally, prices are increasing quickly,” Sun Chemical added. “To secure its supplies for the coming months, Sun Chemical has accepted higher prices to comply with current market conditions.”
“The pressure on the alcohol supply chain is causing an abrupt rise in raw material costs and unfortunately requires us to increase customer prices,” said Nicolas Bétin, director Product Strategy EMEA, Sun Chemical. “We will continue to work with our supply chain partners to manage and minimize the impact on our customers.”
• On March 27, 2020, the Doneck Network announced solvent surcharges on solvent-based flexo and gravure inks.
“Due to the coronavirus pandemic, there is a relevant shortage of solvents, especially ethanol and isopropyl alcohol, as the latter are used in pharmaceutical and disinfection products,” Doneck’s team reported.
• On March 30, 2020, Siegwerk implemented immediate surcharges on all solvent-based inks and varnishes in Europe, Middle East and Africa (EMEA).
“Certain raw materials, such as alcohol, have been impacted in terms of price and availability as a result of the novel coronavirus (COVID-19),” Siegwerk noted. “This is due to the increased need for products with disinfectant properties and the potential for government restrictions or allocation measures. Demand for these products, in particular ethanol, continues to outstrip supply, which has led to reduced global availability and rapid price increases.
“In addition, due to the industry shutdowns in China and India, disruptions to freight and logistics, and many other isolated supply disruptions, Siegwerk is not always able to avoid price increases without increased risk of supply disruption,” Siegwerk added.
• Also on March 30, 3020, Flint Group Packaging Inks Europe announced its own solvent surcharges on all solvent-based inks and coatings in Europe.
“The progressively worsening global economic situation caused by the coronavirus (COVID-19) pandemic is placing untenable pressure on the supply chain for packaging inks and coatings,” Flint Group announced. “Supply across a number of raw material categories, notably solvents, is tightening and costs are rising quickly as the market becomes more constrained. Additionally, freight constraints are resulting in higher costs across all transportation modes.”
Company officials noted that they are doing what they can. Flint Group, for example, noted that they have many employees who have been impacted by coronavirus.
“The worsening global situation caused by COVID-19 is having a significant impact on our business, yet our facilities continue to deliver consistent output despite major supply chain disruptions,” said Kim Melander, VP and GM Packaging Inks Europe. “However, this output comes at a significant cost which to date we have borne alone. We remain optimistic that this surcharge is a temporary measure.”
Siegwerk emphasized the importance of the ink industry in our everyday lives.
“In order to ensure the continued supply of Siegwerk products, in every country in which we operate we have secured, or are in the process of securing, the official governmental confirmation of being part of the critical infrastructure industry as a key supplier to the food and pharma segments,” said Mike van Breugel, director global purchasing for Siegwerk. “Critical infrastructure industries have a special responsibility to maintain normal operations to deliver specific products associated with the safe distribution of food and medical products.”
