HARTSVILLE, S.C., Feb. 12 /PRNewswire-FirstCall/ -- Sonoco (NYSE: SON)
will raise prices on uncoated recycled paperboard by $50 per ton effective
March 1, 2004, it was announced today by Jim C. Bowen, senior vice president,
Global Paper Operations.
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"Market conditions over the past few years have not allowed us to recover
mounting energy, insurance, healthcare and pension costs, all of which remain
high. In addition, we are now seeing increasing recovered paper costs,
characterized by escalating spot price increases in all regions well in excess
of published prices. While our productivity and cost-cutting initiatives have
helped us maintain prices, we cannot continue to absorb this combination of
cost pressures.
"Furthermore, increasing demand for recovered paper from China; signs of
some general economic strengthening, including modest increases in demand for
containerboard and increasing paper mill utilization rates; a normally low
generation period for recovered paper; and recent bad weather, particularly in
the northeast United States, are all historical indicators that we will likely
be entering a cycle of increasing recovered paper costs," said Bowen.
Sonoco, founded in 1899, is a $2.8 billion global manufacturer of
industrial and consumer products and provider of packaging services, with
approximately 300 locations in 32 countries, serving customers in 85 nations.
For more information about the Company, visit the Sonoco Web site at
www.sonoco.com.
SOURCE Sonoco