HARTSVILLE, S.C., Feb 18, 2010 (BUSINESS WIRE) -- Sonoco (NYSE: SON) will increase prices for nailed wood reels by 19
percent and plywood reels by 11 percent effective on shipments as of
March 1, 2010, according to James Harrell, vice president and general
manager, Industrial Carriers Division, North America. Sonoco is one of
the largest domestic suppliers of nailed wood, plywood, recycled wood,
polyfiber, molded plastic and steel reels for the wire and cable
industry.
"Since the start of the fourth quarter of 2009, random dimension lumber
prices have increased by approximately 38 percent, while Southern Yellow
Pine plywood increased by 17 percent," said Harrell. "Given that lumber
and plywood account for a significant amount of the cost of our reels,
it is vital that we address this extraordinary raw material inflation."
Harrell said that lumber and plywood costs have escalated due to
unprecedented wet weather, which has kept saw mills struggling to keep
adequate supplies, an unprecedented number of mill closures and a
growing imbalance between higher and lower grade dimension lumber
resulting from reduced housing starts.
"While we understand that a price increase is never welcome news, these
raw material price increases are of such magnitude that we can no longer
continue to absorb them," said Harrell. "We will continue to source the
most economically suitable materials and continue to focus on driving
productivity to minimize the impact of these market-driven prices on our
customers."
About Sonoco
Founded in 1899, Sonoco is a $3.6 billion global manufacturer of
industrial and consumer products and provider of packaging services,
with more than 300 operations in 35 countries, serving customers in some
85 nations. Sonoco is a proud member of the Dow Jones Sustainability
World Index. For more information on the Company, visit our Web site at http://www.sonoco.com/.
SOURCE: Sonoco
Sonoco
Roger Schrum, 843-339-6018
roger.schrum@sonoco.com