HARTSVILLE, S.C., April 15, 2020 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) 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.”
Founded 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. With annualized net sales of approximately $5.4 billion, the Company has 23,000 employees working in approximately 300 operations in 36 countries, serving some of the world’s best known brands in some 85 nations. Sonoco is committed to creating sustainable products, services and programs for our customers, employees and communities that support our corporate purpose of Better Packaging. Better Life. The Company ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2020 as well as being included in Barron’s 100 Most Sustainable Companies. For more information, visit www.sonoco.com.
Source: Sonoco Products Company