labelsplus : Labels Plus April 2017
Labels Plus 47 Labels Plus 47 combined with the reduced output from China, due to environmental/air pollution measures, has caused a shortage in sulphate-based TiO2, the cost of which was already on an upward trajectory. Costs increased during 2016 by almost 25% and another 6% was recently announced, but the full impact of the fire, will be realised in the next few months and is hard to estimate. Getting material is the key concern at the moment. We are working with our partner suppliers to ensure we can serve our customer base. Our suppliers have told us that the market as a whole is short by 30%. “Last but not least, in the area of UV, the impact of the Chinese production limitations has resulted in cost increases between 8 and 10% for photoinitiators, monomers, and oligomers. “The world of chemicals is dependent on a few players and also dependent on China and India for a number of key raw materials and intermediates, however, increased sea-freight rates are also of concern. “Since the middle of last year, sea-freight costs have increased consistently. The bankruptcy of Hanjin Shipping - the largest container shipping bankruptcy in history - has caused further pressures. We have seen the “transfer times” on shipments from India and China increase, and a number of routes cancelled or reduced in frequency. This is quite concerning from a supply chain point of view. “The raw material challenges are affecting all chemical- consuming industries, and will require careful management to ensure supply. While we cannot disassociate ourselves from raw material movements in terms of cost and availability, we’re confident that Flint Group will be in a good position to ensure supply to our customers at prices that are still competitive in this environment. The global sourcing ability of our company, the close co-operation with our key partners and very senior contacts with the key manufactures, puts Flint Group in a relatively good position. However, these challenges will not abate quickly. Flint Group will work closely with our suppliers and customers to plan for and mitigate the volatile raw material trends we face.” For more information, please visit www.flintgrp.com *Flint Group global price increases became effective March 15. soon start to affect production of some yellow pigments. Also hindering yellow pigment production is a short supply of diketene, due to factory explosion in China. “Naphthalene supply (all from China) is tight, due to a environmental action, causing challenges for red pigment manufacturing. Last but not least, costs of copper and Phthalic anhydride, both key intermediates for blue pigments, have increased, causing increased costs to produce blue pigments. Name a colour and you see there are challenges. Cost is one, but in a number of cases, availability is even more of an issue. “For oil-based inks (sheetfed, heatset and coldset), the key challenge is the increase in crude oil pricing, which has led to cost increases of key materials, including 10% on carbon black, 5% on hydrocarbon resins, and 20% on mineral oils, since Q2 2016. “It is hard to say where the trends will go from here, however, most analysts believe that crude oil will continue to increase, which, if it is the case, could trigger further cost increases of key raw materials used by the printing ink industry. “Flint Group’s printing blanket business has been hit significantly by major cost increases in rubber chemicals. Butadiene - a key rubber ingredient for both the blanket business and also the flexographic plates business - has already tripled in cost since Q3 2016 and new cost increases have been announced in the past weeks. In addition, costs of another rubber chemical, acrylonitrile, rose by almost 35%. “Costs of many solvents have also increased, which affects the cost of manufacturing many pressroom chemicals and solvent-based inks. Hydrocarbon costs increased by 25%, and ethyl acetate (ETAC) costs started to increase earlier this year by double digits. Glycols, glycol esters, and isopropanol are on allocation, we have seen cost increases in the range of 4%, and we expect further cost increases in the future. “Flint Group’s cost of manufacturing water-based packaging inks has been hit hard by the cost increases in styrene ( 35%) and acrylic acid ( 12%), two key ingredients used to make acrylic resin, which is the base for a water- based ink. “The fire at Huntsman’s major TiO2 factory in Finland, Continued from page 45 Aldus ready to establish a bigger footprint in the coming years. Continued from page 3 “We have no competing products and we complement each other and we were both looking to expand. So it’s a logical step to get together and pool our resources. The feedback we have received from principals and clients has been extremely positive regarding the new development.” “A great number of Ian’s customers are our customers,” Frank said, “so there will be efficiencies available having those customers serviced with the one contact point, both for them and for us. Once Ian has decided to enjoy more sailing, around the middle of the year, I am going to be looking after the Aldus side of the business until we’re happy the way everything is running. My feeling about the move is that my background gives me a better understanding than most, and my focus will be on ensuring it’s bedded down seamlessly.” “After 45 years at Aldus it’s time for the younger generation to take the company forward,” said Ian. “I want to spend more time helping my son in his sail-making business which is expanding rapidly, and to spend more time enjoying my yacht and the grandchildren.” Ian, Frank and Chris Bodger will be at LabelExpo in Brussels in September, introducing Frank to principals and the large influx of clients who traditionally make the trip to the show.
Labels Plus November 2016
Aus NZ Print Magazine