Kemira is implementing a 4% energy surcharge for all Pulp and Paper process and functional chemistries across North America for all non-contract customers, effective October 1, 2022. The surcharge announced in April for inorganic coagulants sold through our Industry & Water segment remains in effect.
As direct and indirect energy costs continue to rise, Kemira is seeing a significant impact to its facilities and the breadth of its global supply chain and logistics capabilities. We have taken steps to mitigate the increases over the last 18 months, but there is no sign of reversing the continuing upward trend for these costs while we are in an inflationary environment. Implementing the surcharge will help to offset these continued cost increases. We will review the need for the surcharge as well as the percentage on a quarterly basis.
“We are hopeful the current energy cost landscape is a temporary situation. Although we implemented the surcharge for our industrial customers in April, we are monitoring the development and will make necessary adjustments based on significant changes to energy costs,” says Michael Cavallero, VP, Industry & Water Commercial, Americas.
“We are really proud of how we have managed the global supply chain disruptions over the past 18 months. We have proven to be a reliable and sustainable supplier for all of our customers. By implementing this energy surcharge to our non-contract customers, we can continue focusing on security of supply and our ability to deliver an excellent customer experience,” says Tuija Pohjolainen-Hiltunen, SVP, Pulp & Paper Commercial, Americas.