Consumables
Energy and raw material surcharge on nyloflex and nyloprint products
Wednesday 06. April 2022 - During the past weeks and months, extraordinary events on a global scale has continued to put pressure on supply chains. This is resulting in continued shortages and significantly increased prices for raw materials and utilities.
XSYS is subject to price increases in raw materials with double-digit impact YoY 2021 vs. 2022, as well as increases in electricity and gas with prices in March 2022 being more than six times as high as in January 2021.
XSYS planned for the level of inflation based on Q4 2021 levels. Indeed, XSYS has communicated inflation rises throughout 2021 and announced various pricing measures. Already in the first quarter of 2022, XSYS is subject to substantial additional inflation across energy, raw materials, packaging and both international and local transportation. The pricing actions already announced have recouped a fraction of the inflation that was ultimately absorbed and continues to increase on an almost daily basis.
Friedrich von Rechteren, Global Commercial VP at XSYS, says: “We can absorb some initial inflationary developments by smart hedging, long-term contracts with our suppliers, and continuous operational improvements. It is no secret that supply chains are under pressure, driving the market in the direction of relying on spot rates in order to secure supply.”
Due to these extraordinary inflation levels, XSYS is now left with no other option than to implement a temporary global surcharge of 6% for nyloflex and 4% for nyloprint products. The surcharge recoups a portion of the immensely high utility, raw material, transportation and packaging costs. The surcharge will apply to all orders with a shipment date on and after April 15th 2022.
“We understand that this price increase is adding pressure to the business of our customers during these difficult circumstances, and it has not been an easy choice for us to make. However, to ensure consistent and reliable supply to our customers, we see no other way than passing on some of these costs”, concludes von Rechteren.