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After 2009, a year of economic recession and frustration, a sense of elation is present in Germany again. The economic indicators are changing in a positive direction. Even experts who entertained some doubt; in the beginning of this year, whether the economical development would continue in such a dynamic way, are observing that the upturn (aside from minimal weak periods) is growing sustainably. The ongoing positive consumer sentiment is a key factor in this development and has been influenced by the rapid decrease in unemployment.

However, as you know, where there is light, there are shadows as well. The experts still detect significant imbalances between important raw materials such as crude oil, caoutchouc and paper, to name a few. The multinational crude oil companies are especially pleased with the current trends resulting from a strong and growing economy in Asia. The entire plastics industry depends on the crude oil companies. They cannot ignore these forecasts and must react in a timely manner and with caution.
The observation of these international raw material price developments results in a bitter realization. The price of crude-oil based products, such as resins, propylene, backing films – all basic materials that are needed in the production of adhesive tapes – has increased in the range of 20 – 40 %.

The price of acrylates used by the adhesive tape industry increased by up to 40% within a few weeks.

The situation for natural rubber is significantly worse. Negative environmental influences and high demands, especially from China, further aggravate the availability of natural rubber – an irreplaceable component in the production of adhesives. The quantities required for Europe can only be obtained at inflated prices. We have witnessed price increases of nearly 100% since the beginning of this year.
One should also keep in mind that the energy costs increased by approx. 25% since the beginning of this year.

Because these materials comprise 65 – 76 % of the product, these increases have an especially dramatic impact.

It would be narrow-sighted to think we could wait out this difficult situation. Supply shortages are foreseeable, making production stability the pressing need for the near future. A gradual price increase does not serve the purpose either as a short-term resolution to this situation is not expected.

The current condition of the Euro puts further pressure on the entire supply chain.

Whatever may happen, we, as your partner, will do our utmost to guarantee supply and maintain the high quality standard of our products. It’s not a penny-pinching-mentality, but consistency and continual improvement in quality and service, in addition to our futureoriented company strategy, that differentiates us from other providers.

We will always be there for you!

(RT)