Sonoco Announces $50/Ton Price Increase for Uncoated Recycled Paperboard
April 15, 2020 - Sonoco today announced it is implementing a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) in the United States and Canada, effective with shipments beginning May 13, 2020. According to Tim Davis, division vice president and general manager, Paper and Adhesives, U.S./Canada, it has been nearly two years since Sonoco's last URB market price increase, and since that time the company has experienced inflation on input costs such as starch and other papermaking chemicals, labor and fringes, repair costs and repair materials, and most recently significant increases in recycled fiber costs. "The cost to operate and maintain our paper machines continues to increase," Davis said. "It is critical we maintain margins on our uncoated recycled paperboard business at a level that enables us to continually reinvest in these paper making assets to ensure uninterrupted supply of quality paperboard for our customers. "Recently, Sonoco made the difficult decision to shutter two paper machines in the U.S. and Canada. The cost to maintain these assets exceeded the return earned from operating them. We must do everything that we can to lessen the risk of further mill closures, and retain an efficient supply chain for our customers across our North America mill footprint." About SonocoFounded in 1899, Sonoco (NYSE: SON) is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. To learn more, please visit: www.sonoco.com. SOURCE: Sonoco |