Benzinga | Aug 30, 2021 07:33AM EDT

H.B. Fuller Implements 11% Surcharge On Shipments To Recover Significant Cost Increases In Raw Materials And Related Services

H.B. Fuller (NYSE:FUL) announced today that it will implement an 11% surcharge on shipments of its products globally, effective September 1, 2021, in addition to other communicated price increases. The surcharge is expected to be permanently incorporated into existing pricing by December 1, 2021.

This pricing action is driven by continued short supply and significant cost escalation of certain chemical feedstocks and plastic and metal packaging that have resulted in unprecedented costs to serve customers. These increases have been followed by inflationary costs and short supply for logistics, freight, packaging, labor and many other items required to meet customer needs. H.B. Fuller, one of the world's largest, global providers of adhesives and sealants, has done remarkable work in this unprecedented supply environment to secure materials and provide customers the essential adhesives they need to produce everything from electronics and solar panels to food packaging and personal hygiene products.

The speed and unrelenting continuation of inflationary pressures has resulted in the need for a surcharge, which will be implemented immediately.