Le Havre, France — Sidel Group has implemented a commodity-induced price adjustment on equipment as it faces challenges obtaining raw materials and microchips.
The supplier of equipment to package liquids, foods and personal care products raised prices by an average of 5 percent effective Sept. 6, according to a news release.
Like some of its customers, Sidel is dealing with higher prices for raw material and component shortages, which also could affect the delivery time of price-adjusted equipment, the release says.
Sidel has been trying to keep prices at the same level since the outbreak of COVID-19 despite significant cost increases for raw materials since 2020, according to Ko Hoepman, the company's vice president of portfolio, innovation and marketing.
Sidel officials also point to the pandemic, forced closure of factories and the unanticipated increase in demand for personal electronics such as cellphones and laptops to work and study remotely as creating a global microchip shortage.
Supplier delays might impact Sidel delivery channels for the near future, the release says.
"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," Hoepman said in the release. "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."
Founded in 1965, Sidel offers equipment and services for packaging liquids, foods, home and personal care products in PET, can, glass and other materials.