Sidel adjusts equipment prices due to rising raw material costs

The pandemic has affected the packaging solution industry by leading to a significant price increase and a shortage of raw materials and components used in packaging equipment. To compensate for the rising costs and continue to provide the highest quality solutions, Sidel has implemented a commodity-induced price adjustment on its equipment by an average of 5% effective since 6 September 2021. The deficiency of raw materials and components may impact equipment delivery time as well.

Since the outbreak of COVID-19, Sidel has been striving to keep the same price level for its equipment despite the fact that the price of raw materials has increased significantly since 2020. Moreover, this increase is not expected to recover in the foreseeable future.

Additionally, the pandemic, combined with other external factors, has resulted in a significant shortage of microchips globally. This shortage is an outcome of supply-related disruptions, including forced closure of factories, together with an unanticipated increase in demand for personal electronics such as cell phones and laptops as people were required to work or study remotely. Both supply shortage of microchips and increase in consumption of personal electronics lead to supplier delays which might impact the overall Sidel delivery channels for the near future.

“We are doing everything that is in our control to ensure the high-quality solutions Sidel is known and celebrated for and to acquire the needed commodities whenever and wherever they are available. For this reason, we have increased communication with our suppliers and customers as well as adapted our project execution processes internally, so that the component delays have the minimum impact possible,” said Ko Hoepman, executive vice-president of Portfolio, Innovation & Marketing at Sidel, assuring that Sidel is working to mitigate any risks that shortages could cause.