Quad adds temporary surcharge on printing products due to ink costs
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Quad/Graphics, Inc. (NYSE: QUAD) announced it will implement an immediate temporary surcharge on printing inks, UV coating and varnishes to offset rising costs at its ink manufacturing subsidiary Chemical Research/Technology.
The company cited ongoing Middle East conflict as creating supply chain volatility and increased ink manufacturing costs. Key factors include higher oil and gas prices, elevated transportation costs from fuel increases and shipping disruptions, and rising energy expenses in the manufacturing process.
"We understand the impact cost increases have on our clients, and we've taken steps to absorb or mitigate these increases," said Dave Honan, President and Chief Operating Officer. "However, the pace of supply chain disruption and ongoing uncertainty driven by geopolitical developments require us to take measured action to maintain the quality and service our clients rely on."
The surcharge affects related product categories including coatings, adhesives and specialty fluids, which face similar cost pressures. Quad will communicate implementation details directly with clients and continue monitoring market dynamics.
Chemical Research/Technology serves as one of the largest ink manufacturers in the United States, developing and testing inks, coatings and materials for Quad's print operations. The subsidiary focuses on formulation and material performance to ensure production consistency.
Quad employs approximately 10,000 people across 10 countries and serves about 2,100 clients. The company provides marketing and print services across retail, consumer packaged goods, financial services and health sectors.
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