The increase in price will be implemented for all shipments that start from 13 May this year
Sonoco to increase prices for uncoated recycled paperboard (URB) in US and Canada. (Credit: 41330 from Pixabay.)
US-based packaging firm Sonoco has announced plans to implement a $50 per tonne price increase for all grades of uncoated recycled paperboard (URB) in the US and Canada.
The revised prices will be implemented for all shipments that start from 13 May this year.
The price increase will be implemented as the firm has experienced inflation on input costs that include starch and other papermaking chemicals, labour and fringes, repair costs and repair materials as well as the increases in recycled fibre costs.
Sonoco US/Canada paper and adhesives division vice-president and general manager Tim Davis said: “The cost to operate and maintain our paper machines continues to increase.
“It is critical we maintain margins on our uncoated recycled paperboard business at a level that enables us to continually reinvest in these papermaking 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.”
Sonoco to increase prices for paperboard tubes and cores
Similarly, the packaging firm has announced plans to increase prices for all paperboard tubes and cores that are sold in the US and Canada by a minimum of 8%.
The new prices will be effective with shipments on and after 13 May.
The increment, which is the first in almost two years, is taken to recover the rising costs for recycled paperboard, the primary raw material which is used to produce tubes and cores.