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 lie well outside their historical ranges.

Kelheim Fibres has been successful in limiting the impact of the pandemic on fiber 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 is therefore announcing that with effect from Oct. 1, 2021, or as contracts and agreements allow, prices for its range of viscose fibers will be increased by €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 fibers with the levels of quality and service expected by our customers,” says Matthew North, commercial director of Kelheim Fibres.