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Diversey announces 3% to 4% price increase in Europe by January 1st 2021
Diversey has announced a 3% - 4% price increase across its Professional product ranges in Europe, effective January 1st 2021, due to continued cost movements and investment.
The company says that since the beginning of 2020, its business has been confronted with significant challenges to supply chains, exceptional demand increases and decreases across the different industries and sectors in which it operates and, most importantly, ensuring employees and customers stay safe.
The price adjustments are necessary as a result of continued cost movement and investment in:
R&D and Compliance - Diversey continues to invest in R&D, Regulatory and Compliance including:
- The BPR, Eco-Certification and the impact of ongoing changes in product classification.
- Raw material trends - The current challenging, dynamic market is impacting the costs of key feed stocks including Ethanol, IPA, Chlorhexidine, Caustic Soda, Phosphonates, Copper and Lead.
- Diversey has absorbed or mitigated over 80% of the total raw material cost inflation during the pandemic, which is unsustainable in the longer term with 2021 cost projections higher than pre-pandemic levels.
- Manufacturing - Substantial investment into its world class facilities to ensure continued high quality production and contingency measures.
- Logistics - The resultant cost of ensuring safe and efficient inbound and outbound logistics and continuity of supply in a challenging logistics market.
- People and Technology - Investing in Diversey's people and customer access to their knowledge and support.
"Whilst we continue to adapt our business to the challenge and absorb as much of the impact as we feasibly can, our investment and cost increases are significant and as a result we will be increasing the prices of all Diversey Professional products by an average of 3% to 4%," reports Sinéad Kwant , president Europe.
Diversey says it is focused on increasing value for its customers while mitigating the impact of these unprecedented market conditions. Next to that, the company remains committed to delivering smart and sustainable solutions that improve the efficiency of operations and reduce the carbon footprint of its customers.
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12th November 2020