Beckers Group, a leading global coatings company, has announced that it will increase prices for its main coil and industrial coatings product groups by up to 8% globally due to significant raw materials cost rises. Increases will be implemented in the Q1 of 2021, or as permitted by contract.
Strong growth in coatings demand in emerging economies has led to shortages worldwide, which over recent years have fuelled a rise in traditional raw material costs. Beckers Group absorbed many of the escalating costs through cost control measures and strong support from the Procurement and R&D teams. The recently escalating rise in costs, however, is forcing Beckers Group to adapt their pricing to the market changes to maintain the same service level.
Christophe Sabas, CEO of Beckers Group, emphasised the severity of the inflation on raw materials during the last quarter and the forecast for the rest of the year: “Not only is Beckers facing a historic price increase in its key raw materials, but we are also dealing with tension in the supply chain on some products. Our teams are implementing all the actions needed to mitigate this risk; nevertheless, we have to offset the soaring rise in raw material costs by increasing our prices. This will allow Beckers to continue to deliver the same level of service, secure the supply chain, and maintain our product quality”.
Details of the price increases will be communicated directly to customers for all affected product groups.