Sonoco, the global provider of packaging products for the food and beverage industry, has announced that it will increase prices for all coreboard grades manufactured in and shipped to continental Europe by €50 per metric tonne.
The news comes following a similar announcement that the company is increasing the prices of its paper based engineered carriers.
In addition, coreboard grades manufactured at its Stainland, England, mill will increase by £25 (€39) per metric tonne. Sonoco Europe vice president said that both price increases will be made effective immediately.
"While Sonoco will continue to seek ways to help offset costs withproductivity improvements, recent escalation in wastepaper costs triggered byrising global demand makes this price increase necessary," said Paterno.
Sonoco has blamed the increases on rising operating costs. Industry observers are now waiting to see whether or not the increases will affect costs further up the supply chain. Most analysts are convinced that as the cost of packaging food and beverage products is comparatively small, the manufacturers will be able to absorb the costs.