Due to the escalation of raw material prices, Hempel will increase sales prices of its products and solutions.
The cost of key raw materials used in the manufacturing of coatings is growing
significantly in comparison to 2020 and as a consequence Hempel announced an increase in sales prices of its products and solutions.
“We’re witnessing an ongoing rise in prices for key raw materials due to increased global demand for feedstock as well as logistic challenges. This has a heavy impact on global supply and contributes to higher prices,” says Michael Hansen, Executive Vice President & Chief Commercial Officer at Hempel.
To give a practical example, from January 2020 to January 2021, the cost of epoxy increased by 60% in Europe, 40% in North America and 20% in North Asia. In the same period, the price of zinc increased more than 16% globally, while copper prices rose more than 30%.
“We have made every effort to control and absorb the increases over the last 12 months. It is no longer possible for us to fully absorb the effects as raw material prices continue to rise. We have no other option than to increase the prices of products and solutions. Our focus remains on delivering value to and serving our customers across the world”, concludes Hansen.