THE WOODLANDS, Texas—SI Group, a performance additive company that works in process solutions, active pharmaceutical ingredients and chemical intermediates, has implemented a price increase, effective immediately or as contracts allow.
The price hike affects all global products, depending on product line and region, according to SI Group.
The company said the increase is being instituted to offset rising freight and transportation costs related to "current global logistics disruptions."
Specifically, piracy near Yemen in the Red Sea is forcing ships from Southeast Asia to divert around Africa and the Cape of Good Hope to get to Western Europe and the Atlantic Ocean.
"In light of the evolving market dynamics, SI Group remains steadfast in our efforts to address the challenges posed by the current logistics challenges in the Panama Canal and Suez Canal," said Joey Gullion, senior vice president and chief commercial officer at SI Group. "While we have diligently worked to mitigate these increased costs, it has become necessary to increase prices on our products.
"This decision underscores our unwavering commitment to delivering superior products and services to our customers."
Gullion said SI Group is in contact with global partners to ensure transparency and "to offer visibility into any incremental adjustments."
SI Group said it will continue to monitor market conditions. Impacted customers can contact their SI Group account manager for more information.
SI Group provides performance additives and compounds for the plastics, rubber and adhesives, fuels and lubricants, oilfield, and pharmaceutical industries.