03.23.22
Diversey Holdings, Ltd. plans to apply an additional price supplement in the form of an energy surcharge that will be effective for all deliveries from April 15, 2022.
A leading player in the industrial cleaning market, Diversey was ranked No. 12 in Happi's 2021 Top 50 Report.
The percentage supplement, which has become necessary in order to partially offset incremental inflation and the significant rise in energy, gas and oil prices, ranges from 8% -15% and will remain in place until the increased energy prices return to normalized levels, according to the company.
A significant proportion of the raw materials and manufacturing for Diversey's portfolio are by-products of energy intensive processes. The impact of high energy costs and reduced output in these industries has resulted in significantly inflated costs for many businesses including Diversey.
In light of this, Diversey says it has taken several measures to mitigate the adverse effects, including reducing the use of energy in daily operations, optimizing supply chain, holding higher inventory, and refining the portfolio.
Similarly, the company said it has also taken steps to help its customers manage their energy costs for example through low temperature washing, management information systems, concentrated products and dispensing systems, which offer insights into the usage of energy, in order to identify real savings.
Given the scale of the cost increases, Diversey now needs to implement this surcharge to counter the net effect of the energy surge and the mitigation actions, consistent with others in the industry.
A leading player in the industrial cleaning market, Diversey was ranked No. 12 in Happi's 2021 Top 50 Report.
The percentage supplement, which has become necessary in order to partially offset incremental inflation and the significant rise in energy, gas and oil prices, ranges from 8% -15% and will remain in place until the increased energy prices return to normalized levels, according to the company.
A significant proportion of the raw materials and manufacturing for Diversey's portfolio are by-products of energy intensive processes. The impact of high energy costs and reduced output in these industries has resulted in significantly inflated costs for many businesses including Diversey.
In light of this, Diversey says it has taken several measures to mitigate the adverse effects, including reducing the use of energy in daily operations, optimizing supply chain, holding higher inventory, and refining the portfolio.
Similarly, the company said it has also taken steps to help its customers manage their energy costs for example through low temperature washing, management information systems, concentrated products and dispensing systems, which offer insights into the usage of energy, in order to identify real savings.
Given the scale of the cost increases, Diversey now needs to implement this surcharge to counter the net effect of the energy surge and the mitigation actions, consistent with others in the industry.