Since the beginning of 2021, the average costs of raw materials have increased significantly. In the past couple of months, the costs of key raw materials used in the manufacturing of coatings have increased at faster pace than ever. This is mainly due to increased global demand for feed-stock as well as logistic challenges which in turn impact global supply and leads to higher prices.
Today, the average costs of raw materials are 30 per cent higher than they were when this year started. For example, from January 2020 to May 2021, the cost of epoxy increased by 143 per cent in Europe, 153 per cent in North America and 48 per cent in North Asia (source: Technon Orbichem Epoxide Res-ins; Liquid Spot). In the same period, the price of zinc increased more than 28 per cent globally, while copper prices rose more than 68 per cent (source: London Metal Exchange). This puts pressure on Hempel’s ability to source the materials we need to continue and secure delivery to customers.
“At Hempel we take pride in ensuring a steady supply of trusted coating solutions to our customers. In February this year, we announced a global price increase but given the continued escalation of raw material costs, we now have no option but to increase the prices of products and solutions further to absorb the rising costs,” says Michael Hansen, Executive Vice President & Chief Commercial Officer at Hempel.Hempel is increasing prices by at least 15 per cent and for some products and services, the increase may be higher as the raw materials used for some products are increasing even more. Even during this challenging situation, Hempel’s focus remains on delivering value to and serving customers across the world.
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For further information, please contact:
Nina Lomborg Linneke
Communication Manager
Phone: +45 6155 1500
Email: communications@hempel.com
As a world-leading supplier of trusted coating solutions, Hempel is a global company with strong values, working with customers in the decorative, marine, infrastructure and energy industries. Hempel factories, R&D centres and stock points are established in every region.
Across the globe, Hempel’s paints and coatings protect and beautify buildings, infrastructure and other assets, and play an essential role in our customers’ businesses. They help minimise maintenance costs, improve aesthetics and increase energy efficiency.
We are guided by our purpose - Make our world last longer, beautifully - which is our shared call to action: to protect what matters, enhanced by colour and craftsmanship.
Hempel was founded in Copenhagen, Denmark in 1915. It is majority owned by the Hempel Foundation, which ensures a solid economic base for the Hempel Group and supports cultural, social, humanitarian and scientific purposes around the world.
