Impress obliged to follow tinplate price rise
Recent months have seen extraordinary increases in the price of many basic commodities, including steel, aluminium and oil. These are driving major changes in Impress' cost base, especially for tinplate but also for aluminium, coatings and energy costs.
To recover these and other cost increases, Impress in turn is obliged to raise the price of its steel- and tinplate-based products, by an average of 18% from January 1st, 2005, depending on location and product category. Smaller increases will also apply for aluminium cans.
Francis Labbé, Chief Executive, explained the need for such significant price rises: "The continued recovery in the world economy is driving an unholy combination of inflationary cost pressures. World steel prices in particular have risen this year by 40-50%, due to capacity shortages linked mainly to the very high growth rate in China, which now accounts for one third of world consumption. In their turn all our suppliers have now confirmed very large rises in Tinplate prices for next year, as well as risks of supply limitations.
"But it's not just steel. Aluminium prices have also risen and the much higher oil price affects us in a number of ways, from higher prices for oil derivatives such as inks and lacquers, to transport charges, factory power and heating costs costs".
"We are doing all we can to fight these historically large increases while assuring the supply of tinplate for our customers, and to work with customers to reduce costs throughout the supply chain. However it is clear that no can-maker can absorb cost increases on this scale. The supply and demand balance has shifted radically and leaves us no option but to pass on our higher input costs through increased selling prices.
"Despite this increase, we believe cans, with their many advantages in terms of durability, barrier, presentation, and efficient filling systems, are still exceptionally good value compared to other types of packaging, many of which are also seeing very large input cost increases".
For further Information, please contact:
Talents et Compagnie : Jeanne Bordeau • Charlotte Millet
23, avenue de Iéna 75116 Paris
t: +33 1 56 89 56 52
f: +33 1 56 89 56 50
e: millet@talentscompagnie.com
Impress is a leading international company focused on metal packaging. It is the worldwide leader in the seafood can market, European leader in cans for paints & coatings, European leader in cans for dry foods, and second in the European food can market.
Impress is based in Deventer in the Netherlands and has a worldwide turnover of 1.3 billion euros. It employs over 7,000 people in 42 facilities operating out of 16 countries, in Europe, North America, Japan, and the Seychelles.
Discover Impress on: www.impressgroup.com
