Flint Group reports further price increases

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“Due to continuing cost increases, Flint OPS has no choice but to announce further price increases,” the global printing ink maker said. Flint also plans to close its newspaper printing ink plant in Wolverhampton, UK, due to “the accelerating movement towards online news content”.





Tony Lord Flint
“Extremely difficult period”:
Tony Lord, Flint Group

“The past two years have proven to be extremely challenging times for the printing industry,” said Tony Lord, president of Flint Group Offset Packaging Solutions.

“Raw material shortages and multiple price increases, combined with staff shortages caused by the current COVID-19 pandemic, have created difficult circumstances for all companies involved in the ink industry. From printers themselves to freight companies and suppliers of key raw materials, all have been affected.

“After more than two years of dealing with the challenges presented by the global pandemic, the most optimistic in the industry had hoped that 2022 would present some stabilization in the printing supply chain. However, as we approach the second quarter of the year, this stabilization has yet to materialize and is unlikely in the near future as the tragic events in Ukraine continue to unfold.

“Not only are the hardships of the COVID-19 pandemic still there, but rising inflation, rising fuel costs, huge demand for packaging of all types and a global energy crisis have further weighed down the burdens on suppliers to the printing industry. These increases, in some cases, have been so astronomical that it is not possible for a supplier to absorb, and ultimately the cost increase has been passed on to the supply chain.

“The pressure of longstanding supply chain challenges, brought on by the global pandemic and exacerbated by current rates of inflation, fuel and energy increases, can be felt across the industry. “, said Lord.

“Commodities continue to suffer from increased demand and exponential price increases. The past two years have created a perfect storm for supply chain disruption and rapid price increases. At a time when the industry was expecting to enter recovery mode, it is almost impossible to predict when we might start to see some relief from the strain on our industry.

Due to continued rising costs, Flint OPS has “no choice” but to announce further price increases, he said.

“It is with the greatest regret that we are forced to announce further price increases, as we fully understand the difficult climate in which our customers operate. We hope, like all other printing-related businesses, that we will soon experience a more stable situation. supply chain conditions. However, in the meantime, the increases imposed on our business have created a situation where continuing to sell our products at our current price level is simply not sustainable.

Flint OPS will contact customers soon to discuss how they will be affected by the price increases.

Flint also announced plans to close its Wolverhampton newspaper printing ink plant and began “a formal consultation process with its employees”.

“In a statement today, Tony Lord, Chairman of Flint Group’s Trade Publishing Web Division, announced the potential closure of its newspaper ink plant in Old Heath Road, Wolverhampton, later this summer, with up to ‘to 63 affected employees,’ Flint said.

“It is with deep regret that we make this announcement, possibly ending the long-running manufacture of newspaper ink at the Wolverhampton plant,” Lord said. and elsewhere, which has resulted in a significant reduction in the circulation of newspapers and the resulting demand for newspaper printing ink to such a level, that it is currently no longer considered viable to maintain a facility in the UK United.

“The Wolverhampton plant has an exemplary workforce and as such all possible avenues will be explored to try to retain the bespoke newspaper ink manufacturing site to supply the UK newspaper market. , but unfortunately we have to acknowledge the collapse in demand for newspaper ink, with no realistic prospect of this changing in the foreseeable future, so we have no alternative but to consider ceasing manufacture in the UK United later this summer.

The company added: “Flint CPS Inks UK Limited is now entering a formal consultation process with its employees and their representatives to explore alternatives to site closures, redundancies or ways to mitigate the impact of the redundancies while ensuring that this very difficult situation is handled with the least possible disruption to the hired workforce.

https://www.flintgrp.com

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