Sonoco to Increase Prices for Tubes and Cores
Jan. 27, 2006 - Sonoco said that it will increase prices for its paper-based, engineered carriers (tubes and cores) and related specialty products by 6 percent in the United States and Canada, effective with shipments on or after February 20, 2006.
"Price increases and energy surcharges implemented by producers of uncoated, recycled paperboard during the fourth quarter of 2005 and into 2006 continue to negatively impact our manufacturing cost structure," said John Colyer, division vice president and general manager, Industrial Products - North America.
"Additionally, our converting operations have been forced to absorb widespread inflation in virtually all production cost components, including adhesives, packaging, production supply items, utilities and employee related costs. Our aggressive and ongoing productivity improvements have been unable to fully offset these cost increases," Colyer added.