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Shortage of raw materials critical

Insulation specialist Armacell has warned of significant raw material price rises reaching all-time highs in recent months.

Malte Witt, Armacell vice president EMEA & chief marketing officer

It said what initially appeared to be a short-term cost increase in the raw materials industry has now developed into a very acute situation with far-reaching consequences for all those involved in construction.

There are many reasons for the current shortage of raw materials and supply bottlenecks. The demand for many raw materials has increased considerably throughout the world. As a result, prices are rising, and the current raw materials shortage is leading to stockpiling.

“A pandemic on this scale has incalculable consequences for the global flow of goods and presents extraordinary challenges for our closely interconnected world. The construction sector as a whole and we as insulation manufacturers are under enormous price pressure. We are currently experiencing an unprecedented price explosion as far as our material and operating costs are concerned. All types of plastic are affected by these drastic price leaps,” Guillerme Huguen, Armacell chief strategic development officer and chief purchasing officer, explained.

Malte Witt, Armacell vice president EMEA & chief marketing officer, added: “In recent months, we have made enormous efforts to minimise the risks resulting from the current difficult situation for our business partners. However, with prices for our raw materials, operating supplies, energy and logistics continuing to rise, our options in this extremely tense situation on the market are limited. We realise that in this phase it is crucial that our customers are able to plan, and therefore we inform wholesalers and installers about developments in good time. We want to prevent installers being left to bear the higher costs and recommend that they include provisos to cover price increases in their quotations. In these difficult times for all of us, strong and reliable partnerships are more important than ever.”

9 August 2021


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