Jacobi Carbons is announcing a general price increase of 10% for all Activated Carbon based on coconut shell.
Since the outbreak of corona pandemic, several costs have increased. These costs include:
- Ensuring hygiene, social distancing rules in our factories, and special employee transport arrangements.
- Implementing skeleton operations when needed and introducing overtime to production workers.
- Relocating production between factories in different countries, shipping feedstocks between factories, and creating new production capacities for contingency.
- Sourcing charcoal in remote areas, building higher stock levels, and supporting charcoal manufacturers (funding, commitments, collaboration, etc.).
- Using alternative shipping routes, ports and logistics providers in efforts to secure supply.
- Contracting land transportation, while facing limited availability of forwarders and longer delivery times for cross-border transports.
- Logistics costs have increased significantly.
In order to partly compensate for these costs increases, we implemented a temporary price surcharge during Q2 and Q3 of 2020. Although the situation has improved in some of our manufacturing countries, it is a fact that most of these extra costs will stay while the world is not out of the Corona crisis.
Unfortunately, on top of these additional costs, we have been faced with increasing charcoal prices for the past 9 months. This trend is continuing and has accelerated in the past 3 months due the pandemic leading to imbalanced supply/demand.
That is why we have to implement a permanent price increase on all coconut-based products of an average 10%, while certain product families (such as those manufactured in India) will have to be increased higher. This price increase will be effective October 1st, 2020.
Fortunately, due to our broad manufacturing footprint, as well as our efficient and professional supply chain approach worldwide, we are able to control our operational costs and maintain our unrivalled security of supply.
We thank you for your support and understanding as we continue to ensure supply of our products and the exceptional service level you have come to expect from Jacobi, in spite of these challenges.
Remko Goudappel CEO
Jacobi Carbons AB