Price Adjustment
Dear Customer and Partner,
As you are no doubt aware, the past year has been very turbulent in many markets. Disruptions in material deliveries, imbalances in the freight markets, skyrocketing energy and raw material prices have unfortunately become commonplace. Mälarplast has worked actively to secure materials and tried hold back the in many cases extreme price increases for plastic raw materials with the hope that the trend would reverse. Unfortunately, recent months have instead shown escalating cost increases not only in raw materials but also in electrical energy, the most important base in our manufacturing in addition to materials. The weakened Swedish krona has also contributed to increased purchasing costs for many input raw materials.
To offer a few examples, the price for base plastics such as PP and PE have increased by over 60%, for PC and ABS we see costs have doubled. In addition, we see increases in the price of recycled raw materials and bioplastics. Despite self-produced solar cell electricity and a large proportion of fixed energy agreements, we have seen cost increases on our production electricity of 40-50% compared to the corresponding period last year.
Mälarplast has for many years been good at streamlining and counteracting price increases, which has enabled small historical price adjustments. With recent market events, however, we must implement a price increase of approximately 15%. The adjustment is carried out immediately for new orders and for previously placed orders with deliveries after 1 May.
We thank you in advance for your understanding of these extraordinary measures and look forward to your continued good support in the future.
Sincerely,
MÄLARPLAST AB
Peter Wall
Managing Director
As you are no doubt aware, the past year has been very turbulent in many markets. Disruptions in material deliveries, imbalances in the freight markets, skyrocketing energy and raw material prices have unfortunately become commonplace. Mälarplast has worked actively to secure materials and tried hold back the in many cases extreme price increases for plastic raw materials with the hope that the trend would reverse. Unfortunately, recent months have instead shown escalating cost increases not only in raw materials but also in electrical energy, the most important base in our manufacturing in addition to materials. The weakened Swedish krona has also contributed to increased purchasing costs for many input raw materials.
To offer a few examples, the price for base plastics such as PP and PE have increased by over 60%, for PC and ABS we see costs have doubled. In addition, we see increases in the price of recycled raw materials and bioplastics. Despite self-produced solar cell electricity and a large proportion of fixed energy agreements, we have seen cost increases on our production electricity of 40-50% compared to the corresponding period last year.
Mälarplast has for many years been good at streamlining and counteracting price increases, which has enabled small historical price adjustments. With recent market events, however, we must implement a price increase of approximately 15%. The adjustment is carried out immediately for new orders and for previously placed orders with deliveries after 1 May.
We thank you in advance for your understanding of these extraordinary measures and look forward to your continued good support in the future.
Sincerely,
MÄLARPLAST AB
Peter Wall
Managing Director
