Following the continued sharp rise in the cost of raw materials and surcharges levied by suppliers, XSYS has issued a statement saying it is forced to increase the prices for its nyloprint letterpress plates and nyloflex flexographic printing plates.
The company has sent a formal notice to customers informing them that effective on 1 January 2023, an increase of between eight per cent and 16 per cent will be applied on the base prices of nyloprint products.
In addition, effective 1 February 2023, it will implement a price increase ranging from six per cent to nine per cent on nyloflex flexographic printing plates.
XSYS said while it has been able to offset a proportion of the recent and ongoing increases in costs against various efficiency measures and optimisation of processes, it has now become necessary to share some of the financial burden.
In addition, it said record inflation and continuous supply chain constraints has led to this move.
“XSYS is committed to delivering best-in-class products to all customers despite the unprecedented cost pressures and the challenging supply chain situation,” XSYS global commercial vice-president Friedrich von Rechteren said.
“However, when securing contract terms for 2023, we have again seen significant base price increases from our suppliers, which are especially impacting the XSYS nyloprint portfolio. Raw materials used in the production of this range have a higher proportion of specially sourced components, and with only very limited alternative suppliers, we’ve had no other choice than to accept these costs, along with extended and increased surcharges.”
In addition to the above-mentioned price increases, the company mentioned that it has proven to be a continuous challenge to secure the transportation of these special materials with delays negatively affecting production schedules and lead times.
Furthermore, it added that the cost of energy across the board remains at a consistently inflated level impacting not only transport, but also storage and other warehousing activities.
“This is an incredibly difficult time for the industry, as suppliers and converters alike struggle to source materials and deliver their products, which of course affects the entire value chain. Unfortunately, we’ve had to take this course of action, but it really is a last resort and I want to reassure our customers that we will do our utmost to lessen the impact through close cooperation and support,” von Rechteren said.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter