Borregaard Ingredients Increases Vanillin Prices

03/06/08 Borregaard Ingredients increases vanillin prices with a two digit percentage due to high raw materials prices.

The prices for the relevant raw materials for the vanillin and ethyl vanillin production have risen dramatically and have now reached a new level - compared to 12 months ago.

"We are unfortunately no longer able to carry this increase alone and see no other way than to share a part of the cost increase with our customers,” says Thomas Marwedel, Business Director at Borregaard Ingredients in Sarpsborg, Norway.”

Borregaard is forced to raise the prices between 10 percent and 20 percent, varying over the different products.

“We will try to find alternative solutions within our wide portfolio that might help to tackle the price increase through customade solutions,” says Marwedel.

“We understand that such a move is not welcome in a market that is hit by increasing prices. But setting high standards for the sake of quality products and reliable supply and logistics, we have to cover our costs appropriately in order to sustain the Borregaard quality level also in long terms”, says Thomas Marwedel.

In addition, Borregaard is challenged by a strong global demand for Borregaard’s green vanillin, which is vanillin with wood as a raw material. The trend towards raw material from renewable resources is evident. The current demand exceeds the company’s capacity.

“Of course we are striving to constantly increase capacity and we will secure the contracted volumes for our strategic customers”, says Thomas Marwedel.

Overall, Borregaard is optimistic about the future. “Being reliable and trustworthy is key for a supplier in our industry. We feel that people trust us and that people show appreciation for our compassion for the products and the serosity with which we run our business. That is most important for us and never subject to any compromise. We want to use that as a platform to intensify the service together with our customers”.