Raw materials, energy and transport: rising prices & availability

SEQENS is adapting its prices in order to secure its supply chain and customer services in the face of an unprecedented situation of rising prices and availability of raw materials, energy and transport

All over the world, prices for raw materials, energy, operating and transport costs are skyrocketting. Energy prices have more than tripled in Europe and Asia. China has decided to shut down hundreds of facilities to meet its carbon emission targets, but also to save energy for the winter. Commodity prices have increased from +30-40% to +300-400% for most commodities and specialty chemicals. The price of steel, which directly impacts our operating costs, has more than tripled in less than a year. There seems to be no limit to the increase in shipping prices. And beyond prices, the very availability of certain materials, equipment, spare parts, containers and even electricity remains very uncertain for the coming weeks and months.

As a global, integrated leader in pharmaceutical solutions and specialty ingredients and chemicals, SEQENS has invested heavily in a secure and sustainable supply chain that starts with securing raw materials and includes strong partnerships with key suppliers as well as building our own integrated facilities close to our customers’ facilities. Thanks to these investments, SEQENS has been able to maintain a high level of service over the past 24 months, even at the height of the crisis we have experienced.
More than ever, our priority is to secure supplies, in order to minimize the risk of disruption for our customers. However, faced with this exceptional situation, the implementation of a secure supply chain generates major additional costs. Although Seqens teams are doing everything to limit the impact on the availability of our products, such a sudden and unprecedented increase in prices and consequently in our production costs will inevitably lead to a new review of the prices of most of our products as of now and for the weeks and months to come until the situation stabilizes and returns to normal.

n this unprecedented period, our customers can count on the mobilization of Seqens’ teams to mitigate the inevitable impacts on our customers and to continue to ensure the long-term supply of our products.