According to the company, one of the major drivers for the company’s decision is the 200 to 300% cost increase of key naphthalene derivatives known as Letter Acids that are necessary to produce black, blue and red dyes. The situation is the result of the pressure by India and China authorities requiring producers to reduce their output until improved waste water treatment facilities are in place.

“We tried to absorb these increasing costs as much as possible, however the situation has been worsening in the last quarter of 2013 and the first quarter of 2014,” explained Helmut Wagner, Global Head of Paper Solutions Business at Archroma. “We currently foresee no likely return to the previous cost levels.”

Price increases will be effective immediately or as contracts allow.