Hempel gives notice of price increases
With the raw material cost increases of 2016 set to continue into 2017, leading coatings manufacturer Hempel has announced price increases of certain products.
The cost of many raw materials used in the manufacturing of coatings has increased over the past year. Since January 2016, for example, the cost of copper has risen by 34 per cent and the cost of zinc has gone up by 78 per cent (source: London Metals Exchange and ICIS Pricing). Titanium dioxide, another key raw material, has also shown significant increases in cost.
Raw materials constitute a major part of the cost of manufacturing coatings for the protective, marine and decorative industries – and, while Hempel does everything possible to mitigate these cost increases, there is a limit to how much can be absorbed. Therefore, Hempel has announced that it will increase its prices of selected products.
“There may be regional differences in some raw material costs, but the overall trend is very clearly up,” explains Lars Petersson - Executive Vice President & Chief Operating Officer. “We have limited the impact to our customers by working proactively with our suppliers, our R&D and our manufacturing set-up, but, as the trend is continuing, we have no other option than to increase the prices of some of our products.”
About Hempel
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 can be found in almost every country of the world. They 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.
At Hempel, our purpose is to shape a brighter future with sustainable coating solutions. We firmly believe that we will succeed as a business only if we place sustainability at our heart. Not only is it the right thing to do, it will strengthen our competitive position, make ourselves more resilient and reduce our risk.
Hempel was founded in Copenhagen, Denmark in 1915. It is proudly 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.
