Veka responds to raw materials surcharge

Veka has responded to criticism of the raw materials surcharge as just ‘another way for systems companies to make money’.

Veka says it has a ‘clear view on the purpose of its surcharge’ (RMS) and that is to ‘protect its customers, which will ultimately protect the industry’.

The system house adds that the ‘formidable economic environment has had a huge impact on the whole supply chain, being at the mercy of the crude oil market, and we are all facing exceptional costs.’

According to Veka, the challenge for all systems companies is to ‘manage and mitigate’ these price increases.

Tim Taylor, commercial director, said: “Pricing fluctuations each month are frustrating for customers and as a business we feel those frustrations too, but by being transparent and notifying everyone four weeks from implementation, our customers have the information and time for their own business planning. We will continue to be very clear on the numbers, month on month.”

Veka’s RMS is attached to the public S-PVC (U) index published by Plastics Information Europe, which, according to Veka, is the ‘true indicator’ for the cost of raw materials. This is tracked by Veka’s commercial support team, which bases its surcharge on the previous month’s movement in price. Veka says that this means it can be reactive and pass on cost reductions to customers immediately.

Veka is reported to have reduced its surcharge for July, a reduction that will also be sustained in August.

Tim continued: “I have visited many customers recently that continue to have healthy order books. As a business we will continue to focus on service and delivery performance. As the challenging economic conditions push us, like the rest of the industry we will continue to respond, to do everything possible to manage costs, put our customers first and ride out this rocky period together.”