Teijin signals potential price hikes amid cost pressures

Tokyo, Japan — Teijin Ltd has announced that it is considering product price increases as rising costs linked to geopolitical tensions and prolonged price competition weigh on the business.

In a 26 March statement, the Japanese group said the “deteriorating situation in the Middle East” had disrupted crude oil supply, causing “rapid price fluctuations” and significantly increasing costs for raw materials, energy and logistics.

Teijin added that “intense price competition over the past few years” had challenged the long-term sustainability of the materials industry.

While the group has taken steps to reduce procurement and production costs, it said the increases are “too steep to be offset” by internal efforts alone.

"We have concluded that it is time to consider additional measures, including product price hikes, to ensure stable supplies and maintain quality," said the group.

Teijin said it will discuss potential price adjustments with customers “in good faith, taking into account the future market environment, business terms and conditions, and other factors.”