Hempel announces further global price increases
Leading coatings manufacturer Hempel is set to increase sales prices of products and solutions across decorative, energy, infrastructure and marine industries as a response to continued global increases in the cost of raw materials.
Key messages
- The costs of raw materials continue to rise, putting pressure on the coatings industry
- Hempel has made every effort to control and absorb increases over the last 18 months, but it is now necessary to raise prices once more
- Hempel will continue to focus on servicing customers and providing industry-leading performance through innovative solutions
For more than a year now, average costs of packaging and raw materials have been on the rise, putting pressure on a number of industries. In the coatings industry, the cost of key raw materials such as zinc, copper and epoxy has continued upwards, reaching levels not seen in years, and resulting in significantly increased manufacturing costs.
This development is a result of a number of global trends, spanning the short-, medium- and long-term, such as an increased focus on electrification, the ongoing energy transition, the economic rebound following the COVID-19 pandemic, and continued logistic bottlenecks and production shutdowns as a result of the pandemic.
“We’re seeing a number of issues putting pressure on Hempel’s ability to source the materials needed to continue delivery to customers,” says Michael Hansen, Executive Vice President and Head of Energy & Infrastructure.
“At Hempel, we pride ourselves on being a trusted partner to customers. We have serviced customers for more than 100 years, and we have made every effort to control and absorb the increases over the last 18 months. However, at this point in time, it is no longer possible for us to fully absorb the effects as raw material costs continue to rise and we now need to increase the prices of products and solutions once more,” adds Alexander Enström, Executive Vice President and Head of Marine.
Price increases of around 10 to 25 per cent will be implemented across products and solutions in Decorative, Energy, Infrastructure and Marine. Hempel will continue to focus on servicing customers and providing industry-leading performance through innovative solutions.
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Press contact:
Joanna Ashmead, Head of Media Relations
Tel: +45 30772816
Email: communications@hempel.com
About Hempel
As a world-leading supplier of trusted coating solutions, Hempel is a global company with strong values, working with customers in the decorative, marine, infrastructure and energy industries. Hempel factories, R&D centres and stock points are established in every region.
Across the globe, Hempel’s paints and coatings can be found in almost every country of the world. They protect and beautify buildings, infrastructure and other assets, and play an essential role in our customers’ businesses. They help minimise maintenance costs, improve aesthetics and increase energy efficiency.
At Hempel, our purpose is to shape a brighter future with sustainable coating solutions. We firmly believe that we will succeed as a business only if we place sustainability at our heart. Not only is it the right thing to do, it will strengthen our competitive position, make ourselves more resilient and reduce our risk.
Hempel was founded in Copenhagen, Denmark in 1915. It is majority owned by the Hempel Foundation, which ensures a solid economic base for the Hempel Group and supports cultural, social, humanitarian and scientific purposes around the world.
