Saturday, April 13, 2024

Raw materials market supply and demand crisis

SAERTEX multiCom® reacts to dynamic development on the raw materials markets

The situation on many raw materials markets changed completely in recent times due to several external factors and indirect effects of the pandemic. SAERTEX multiCom® an producer of UV-cured GRP pipe liners is to increase prices to maintain the stability of delivery in the long term.

During the difficult Corona pandemic period, SAERTEX multiCom had succeeded in meeting the high demand for products with a high level of performance. The manufacturer of GRP pipe liners is now experiencing a greatly changed, tense supply situation in the raw materials markets. This is due to a variety of external factors, intensified by the indirect effects of the pandemic.

“We see a drastic shortage of raw materials like glass fibres, resins and foils. Additionally, there are cost increases for all process and operating materials. There is also a massive rise in freight and energy costs.” said Dominic Bruning, Purchasing Manager at SAERTEX multiCom.

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SAERTEX multiCom has therefore announced that with immediate effect it will adjust its prices to this dynamic development. The increase will be 9.3% for SAERTEX-LINERs® in Europe, Africa and South America. These areas are supplied from the European SAERTEX multiCom site, which is at the moment the first production centre affected by the price increases in the raw materials markets.

Due to the pandemic, many large manufacturers of glass fibres have shut down the global capacities of their blast furnaces. Furthermore, there is news about force majeure (shortfalls due to force majeure) from well-known manufacturers in the chemical and glass fibre industry. Therefore, the demand for raw materials such as glass fibres, resins and foils is much higher than the available supply. Not only are raw materials for the production of the GRP pipe liners becoming scarce but also packaging materials and container capacities. Through a global production network and long-term partnerships with suppliers, SAERTEX multiCom has a proven, stable supply chain. The company has a confident outlook on the challenges ahead.

“We will keep our customers informed with absolute clarity about the dynamic developments in the raw materials markets.” said Kai Diecks, Managing Director of SAERTEX multiCom. “We are confident that we can manage these extraordinary times together with our partners.”

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