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Diversey has announced a 3% to 4% price increase across its Professional product ranges in Europe, effective 1 January 2021, due to continued cost movements and investment.
Since the beginning of 2020, Diversey’s business has been confronted with significant challenges to supply chains, exceptional demand increases and decreases across the different industries and sectors the company operates in and, most importantly, ensuring employees and customers stay safe.
The price adjustments are necessary as a result of continued cost movement and investment in:
R&D and Compliance – Diversey continues to invest in R&D, Regulatory and Compliance including the BPR, Eco-Certification and the impact of ongoing changes in product classification.
Raw material trends – The current challenging, dynamic market is impacting the costs of key feed stocks including Ethanol, IPA, Chlorhexidine, Caustic Soda, Phosphonates, Copper and Lead. Diversey has absorbed or mitigated over 80% of the total raw material cost inflation during the pandemic, which is unsustainable in the longer term with 2021 cost projections higher than pre-pandemic levels.
Manufacturing – Substantial investment into its world class facilities to ensure continued high quality production and contingency measures.
Logistics – The resultant cost of ensuring safe and efficient inbound and outbound logistics and continuity of supply in a challenging logistics market.
People and Technology – Investing in Diversey’s people and customer access to their knowledge and support.
Sinéad Kwant, President Europe, commented: “Whilst we continue to adapt our business to the challenge and absorb as much of the impact as we feasibly can, our investment and cost increases are significant and as a result we will be increasing the prices of all Diversey Professional products by an average of 3% to 4%.”
Diversey says it is focused on increasing value for its customers while mitigating the impact of these unprecedented market conditions.
