SANDEFJORD, Norway - Jotun announced that over the last 12 months, the cost of raw materials used for manufacturing coatings has escalated significantly and affects the coatings industry worldwide, forcing the company to increase prices for marine, protective and powder coatings.
According to the company, raw materials such as epoxy, titanium dioxide and copper have increased by more than 20% over the last 12 months. Zinc metal prices have increased by more than 50%, and polyester resins have increased substantially. Positive economic results from China, the United States, Japan and the EU have led to higher demand for some raw materials at the same time that the supply side has faced challenges. This combination drives the costs of marine, protective and powder coatings significantly upwards.
“We saw this trend and strived to avoid a situation where prices on our products should be affected. But when the costs of key components continue to increase significantly over time, it leaves us with no other option but to raise the prices on our affected products,” said Geir Boe, Group Executive Vice President, Jotun Performance Coatings.
“We have tried to postpone price adjustments, and we are working closely with our suppliers with an effort to reduce the effect for our customers. However, at this moment we don’t see how we can absorb the cost increase anymore. We do believe that our customers will understand the situation,” Boe said.