Diversey has announced a 5% price increase across Europe, effective 1 January 2019, due to unforeseen and permanent cost increases.
Since late 2017, Diversey’s business has been confronted with significant cost increases in labour, energy, transportation, and raw materials. This has been due to strong inflation, capacity constraints, ‘force majeure’ supplier events, and an increasingly stricter global regulatory landscape.
Freight costs have also increased, due to the development of dangerous goods transportation regulations, higher taxes and diesel costs, driver shortages, and a strong overall economy.
Gaetano Redaelli, global president of Diversey's Professional Division, said: “Though we continually focus on internal programmes to improve our cost position, the impact of the cumulative market increases in the past months, and the forecasted increases in the coming period, can no longer be mitigated solely by Diversey. Therefore, Diversey will be implementing price adjustments in Europe in the short term, which may range between 3-7% depending on the product category and the country.”