Doug Aldred, chief commercial officer, Flint Group, said, "The recent events in the Middle East are having a significant impact on the cost and availability of many essential materials and services, and regrettably, we do not expect these pressures to ease quickly."
The economic repercussions are being felt across the company's entire value chain, driven by factors including price increases for raw materials and intermediates, rising transportation, logistics, and insurance costs, longer lead times, lower availability of certain materials, force majeure declarations from key suppliers, and spiking energy costs.
The move underscores the systemic risks embedded in a heavily globalised manufacturing ecosystem. Heiner Klokkers, President & CEO, Europe, India, Africa & the Middle East – Flint Group, noted that "Following several significant disruptions over recent years, supply chains are fragile."
While Flint Group is working to mitigate costs and secure raw materials, the scale of the increases necessitates immediate price corrections. The company's primary objective, according to their statement, remains "the continuity and security of supply for our valued packaging customers." Details of specific increases will be communicated through regional sales organisations.