Miraclon announces price increases amid soaring freight and materials costs
Taking the first price action since the launch of the Kodak Flexcel NX System in 2008, Miraclon has announced a price increase plus the introduction of temporary freight surcharges.
12 Jan 2022 | By Rahul Kumar
Payne: The increased costs were a temporary situation and "will moderate"
Miraclon has announced a global price increase of 6% on all of its products, effective 7 February. It is also bringing in temporary surcharges to mitigate higher prices for distribution and freight. The flexographic platemaking company cited the rapid price inflation of raw materials, energy, labour and distribution costs "impacting the entire package printing value chain", and said it believed its approach was as fair and equitable as possible for customers.
Chris Payne, Miraclon chief executive, said in a press note: "Securing supply for our customers is our overriding priority. After weighing a combination of factors, we are taking two separate actions, because there are two different market forces at work.
Payne added, "First, we’re raising the price of all our products to address the higher costs for raw materials, labour, utilities, and business services we are now paying. Second, we’re implementing temporary surcharges in response to the current higher costs as a result of the significantly extended supply chain and raised prices for distribution and freight services."
Miraclon, which was formed from the sale of Kodak’s flexographic platemaking division in 2019 - retains use of the Kodak and FlexCel names.
It’s the first time Miraclon has put up prices worldwide since 2008, barring some local inflation and foreign exchange impacts in specific markets.
Miraclon has announced a price increase of 6% from 7 February, 2022
During the pandemic Miraclon has ramped up production at its manufacturing sites and now holds twice as much inventory of raw materials and finished goods as it did pre-pandemic in order to ensure continuity of supplies to customers. The firm said "trade shops, converters, brands and retailers were prioritising security of supply over price."
"This means paying the prices for goods and services that the market demands. Ensuring all players in the value chain get a fair return is the only way to guarantee a healthy and resilient supply chain," Miraclon stated.
The firm has also set up an online resource detailing the factors influencing its decisions.
Chris Payne - CEO Speak
CEO Chris Payne told PrintWeek: “The flexo and packaging market has been in growth mode for a decade and we have some great technology that is very different to other offerings. This has enabled us to grow annual sales and enabled Miraclon to drive internal efficiencies. Our customers benefitted with constant prices that helped them grow their businesses.”
He added, "the business had absorbed standard inflation and other costs since Kodak launched the FlexCel NX digital plate at Drupa 2008, but in the current circumstances “securing supply for our customers is our overriding priority."
"After weighing a combination of factors, we are taking two separate actions, because there are two different market forces at work. First, we’re raising the price of all our products to address the higher costs for raw materials, labour, utilities, and business services we are now paying. Second, we’re implementing temporary surcharges in response to the current higher costs as a result of the significantly extended supply chain and raised prices for distribution and freight services."
"As soon as we are able to, we will reduce, or remove, the surcharges. We are confident this strategy is in the best interests of our customers, the supply chain and Miraclon."
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