China rebate cut made closure of 3000 chemical units
China recently revised its VAT rebate on exports, which impacts on the availability and price of pigments, resins and other chemicals used in ink production. It is also closing down more than 3,000 chemical operations in a bid to cut pollution ahead of the Beijing Olympic Games in 2008.
Flint’s European marketing director Markus Kaiser told printweek.com: “The VAT rebate that was given on Chinese exports is one of the reasons for the increases. The increases in raw materials costs has also affected prices.”
“The pressure is high. Ink producers can’t cope and will need to pass [the costs] on,” he added.
The European Printing Ink Association (EuPIA) has warned its members to “expect shortages and significant cost increases for all member companies”.
Moira McMillan, chief executive of the British Coatings Federation, said the body was “pretty concerned” about the hikes.
McMillan referred to the projected cost increases, saying that there could be rises of “up to 40% on certain raw materials” used in ink production.
“I don’t think there’s anything UK industry or government can do about it.”
Flint Group is due to release information on price rises in Europe within the next week.
