– a Subsidiary of Tufco, LP
October 13, 2017
To Our Valued Customers:
Recent events of set in motion the potential interruption in normal supply of thermal paper. Connect Chemical which produces up to 40% of leuco die used global he was recently shut down by the Chinese government as a part of an anti-pollution effort. This dye is a key ingredient in the coding for thermal paper. It could take three months or more for Connect Chemical to alter the facility to be compliance with environmental regulations. It has been reported that the shortage of this leuco dye has already affected the production of thermal paper of at least one large producer.
This is a very recent development in the thermal market and how it will affect the future supply and pricing of thermal paper is not yet to be seen. Rumors are that the shortage before smells to allocate told inch in double digit price increases could happen without notice.
The assured that as of today we are confident that we can cover your normal paper needs with paper currently in our warehouse in orders schedule to arrive for the next few months. We are working closely with our current paper suppliers and also looking for opportunities to pick up additional tonnage.
This actuation alter a business practices in the orders will be limited to historical monthly averages on thermal items Mills take immediate, double-digit increases we would have to suspend our customary 30 day notice on price increases. Since we will be reducing are on hand inventory on stock items to ensure we are using our Milstock in the most effective way, reading time zones stocking orders could be extended. We ask that you keep this in mind when planning your orders.
We are increasing your thermal prices affective with shipments on November 13, 2017 by 6%. This is unrelated to the die shortage it is a result of mill increases that impacted us in early October. Documentation is available to support this change.
Well this is an unprecedented it on for scene development in our market, we are confident that if we all work together we can weather the storm. Our staff is available if you have any questions or concerns related to this information.
Thank you for your business and support.