The year 2021 has brought extraordinary challenges for society and for industry. Alongside the Covid-19 pandemic, recovering demand, disruption in the global freight systems and dramatically increased energy costs due to reduced supply and emissions trading schemes and their consequences are driving significant cost increases for raw materials and negatively influencing supply chains. Prices for energy and freight currently lay well outside their historical ranges.
Kelheim Fibres GmbH has been successful in limiting the impact of the pandemic on fibre production. However, as a company operating its own cogeneration energy plant and with a high level of export business outside Europe, these cost factors have had a severe negative impact on margins during the second and third quarters of 2021. With energy costs set to remain at unprecedentedly high levels and potentially increase further in the fourth quarter, no relief to the high level of freight costs foreseeable, and raw material costs also remaining at a high level, the company needs to take steps to prevent further margin erosion.
Kelheim Fibres GmbH is therefore announcing that with effect from October 1, 2021, or as contracts and agreements allow, prices for its range of viscose fibres will be increased by EUR 0,20/kg. In addition, freight cost adjustments will be applied on an individual customer basis. In cases where energy cost adjustments are not included in contracts and agreements, a temporary energy surcharge will be applied.
“The measures we are taking are absolutely necessary to ensure that Kelheim Fibres remains in a position to supply fibres with the levels of quality and service expected by our customers,” says Matthew North, Commercial Director of Kelheim Fibres.
Kelheim Fibres’ Business Managers will be in contact with individual customers during September with further information.
Kelheim Fibres GmbH is the world’s leading manufacturer of viscose speciality fibres. Innovative products, flexible technologies and an exceptional focus on sustainability form the foundation of the company’s success.
Our speciality fibres are used in most diverse applications from fashion, hygiene and medical products to nonwovens and speciality papers.
All our fibres are made from 100 % wood pulp from PEFCTM or FSC© certified sources. They are fully biodegradable and offer an environmentally sound alternative to petroleum-based materials in a broad range of different end products – while maintaining or even enhancing the functional performance of the product.
The production takes place exclusively in Germany and complies with the strict German environmental legislation. Our closed-loop philosophy and an energy-efficient way to operate our plants help to save valuable resources. Kelheim Fibres is the first viscose manufacturer worldwide with an EMAS-validated environmental management system.