Kodak will be raising prices of all of its offset printing plates by 9 per cent, due to significant increases in costs for raw materials, likely before the end of year.
These materials that are driving the plate prices higher include aluminium, chemicals and packaging materials.
Details of the pricing and when it will come into effect will be announced in the next month or so. Kodak supplies around a third of New Zealand’s printing plates.
Kodak says it is continuing to improve productivity and efficiencies to help offset these marketplace dynamics, but the magnitude of the materials cost impact has made it necessary to increase plate prices.
Robert Mollee, business manager print system division, Kodak ANZ says, “At this point in time the company is looking at restructuring which is currently under review. There is not a definite date set for the price rise. We are having to review our business as well.”
Mollee says the price rise will be primarily for plates, with probably some chemistry too. He says with regard to the price rise coming into effect, “Certainly Kodak is looking at option of final quarter of this year, with early 2018 an option.
“When it comes to aluminium customers need to realise it is a two way effect for them, there may be a price increase on material, but there may be an upside in scrap metal claim aligned with price of aluminium. What we see happen at the front end of purchase mirrors at back end of scrap reclaim.”
Brad Kruchten, president, Print Systems Division, Kodak, says, “The printing plates market is both technology-intensive and cost-competitive. As a result, there is no room for us to continue to absorb these escalating raw materials costs without raising our own prices.
“Our approach to implementation will affect our newest and most technically-advanced products the least, while our more mature offerings, which are less efficient and less advanced, will see higher price increases. This, in turn, will help drive long-term viability, profitability and sustainability for our printers and our industry partners.”