Press Release Association of Paint and Printing Ink Manufacturers (VVVF)
13 May 2011 - Press Release Association of Paint and Printing Ink Manufacturers (VVVF)
Leidschendam, May 13, 2011
Paint and printing ink industry worried about rising commodity prices and an unprecedented increase in delivery times
Paint and printing ink manufacturers in the Netherlands are facing an unprecedented increase in prices of raw materials. In addition manufactures are told by their suppliers that the requested products are not available in a short period of time. This causes a great increase in global demand for raw materials and a significant reduction in capacity to other suppliers.
"In 2010, the raw material situation was already critical," said Martin Terpstra, director of branch VVVF, "but since the beginning of this year the situation became worse. Price increases of raw materials such as resins, solvents and especially the white pigment titanium dioxide which is widely used in the paint industry has run into double digits. "
Terpstra notes that many commodity producers, as a result of the economic crisis, have significantly reduced their production capacity and staff are made redundant. Suppliers were suprised by the rapid recovery of the global economy. "Thereby not creating enough stockage to satisfy the global demand. This allows them not to deliver enough raw materials, particularly because of increased demand from emerging countries."
Raw materials for making paint and printing ink are often more than 50% of the total production cost. It will, says the VVVF, therefore not be any surprise that the observed price increases and long delivery times have an enormous impact on the resilience of the industry.
This resistivity is already put to the test by remaining strong position in construction. The bulk of sales of the VVVF members (paint supplier) is responsible for this. After a previous decline in 2009, the number of completed new homes in 2010 (56,000) again sharply decreased by 32%,. This translated in 2010 for the paint manufacturers a reduction in sales of 3%while earlier in 2009 there was a volume decline of 12% in this market.
According Bouwend Nederland, there's still no light at the end of the tunnel, and we must keep in mind that margins are under enormous price pressure.
The printing ink industry is facing similar issues, many printers are facing shortage of orders and some even had to close. This naturally affects the sales of printing ink manufacturers.
VVVF represents the interests of 83 members from the paint and printing ink industries, whom employ 6300 members.
Paint and ink protect, enhance and enable communication. The VVVF promotes economic value and social embedding of the products of its members. The VVVF participates in the Coatings Care program and is a member of the European industry association CEPE.