The company also has announced a price increase for European customers across all of its Sun Chemical product lines, effective January 1. As with the increase in Brazil, the percentage increase in Europe will be in the high single digits and will vary depending on the product composition and product line. In Europe, the company also will communicate specific increases directly with customers.
Sun Chemical, a member of the DIC group, is the world's largest producer of printing inks and pigments and a leading provider of materials to the packaging, publication, coatings, plastics, cosmetics, and other industrial markets. Despite average raw material prices stabilizing in 2012, costs have risen on an annual basis and further increases are expected for 2013, the company notes. In both Brazil and Europe, these are mainly due to production and environmental restrictions on key materials, a weaker value of the real and euro, and high demand levels.
Luiz Lucietto, GM, Sun Chemical Brazil, and Felipe Mellado, Sun Chemical's chief marketing officer, jointly stated that "the high levels of raw material costs are unprecedented and as a result make it necessary for us to keep our ink prices under review," said. "We work proactively with our supply chain partners to manage and minimize costs, but due to the economic reality, cost pressures have been constant and significant price increases are being passed on to the inks industry. To ensure we maintain high levels of product quality and service as well as profitability, it has become necessary to further increase customer prices."
Sun Chemical Corp. is a subsidiary of Sun Chemical Group Coöperatief U.A., the Netherlands, and is headquartered in Parsippany, N.J., U.S.A.
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