The company has considered the recent turbulence in its raw material supply chain and concluded that a rise in packaging prices is inevitable in the face of current sharp cost increases.
Bart Stubbe, director of purchasing at Linpac, said: “Since March, unprecedented production issues have been reported across the European petrochemical industry, driving tight polymer supply which, when coupled with strengthening demand, has led to sharp price increases for both monomers and polymers.”
Stubbe continued: “We have seen a record series of force majeure declarations from suppliers, a lack of product availability in some cases and soaring polymer prices across Europe.”
Linpac today operates 18 plants supplying over 70 countries around the world with a wide range of high quality rigid and flexible packaging solutions for the food industry.
Daniel Dayan, Linpac chief executive commented: “We pride ourselves on delivering reliable, high quality, rigid and flexible packaging solutions for fresh food to leading retailers, packers and distributors around the world.
Despite our on-going efforts to improve efficiencies and the performance of our products through innovative design, the difficult cost situation we are facing means price increases have become inevitable.”
