Sonoco-Alcore to Increase Paperboard Prices in the EMEA Region

Rhea-AI Summary

Sonoco-Alcore S.a.r.l. announced a price increase of €70 per tonne on all recycled paperboard grades in its EMEA regions, effective from September 1, 2022. This decision is driven by escalating energy costs and uncertainty in the market as winter approaches. Vice President Phil Woolley noted that the company may need to implement further increases or surcharges depending on the evolving energy situation. Sonoco, which operates 24 tube and core plants and five paperboard mills in Europe, is wholly owned by Sonoco (NYSE:SON), a global packaging provider with 2021 net sales of approximately $5.6 billion.

Positive

• Sonoco raised prices by €70 per tonne for recycled paperboard, which may help offset increased supply costs.
• The company has a commitment to monitor energy market conditions closely, ensuring supply stability for customers.

Negative

• The price increase indicates significant pressure from escalating European energy costs, which could impact profit margins.
• Potential for further increases or surcharges may create uncertainty for customers and affect long-term contracts.

BRUSSELS, Belgium, Aug. 22, 2022 (GLOBE NEWSWIRE) -- Sonoco-Alcore S.a.r.l. announces today that due to the continued escalation in the cost of European energy it will raise prices by €70 per tonne on all recycled paperboard grades sold in the Company’s EMEA regions effective for shipments made on or after the 1^st September 2022.

“In light of the significant increases seen across the recent energy markets, the uncertainty facing the forthcoming winter period and the resultant impact on our supply costs we have no choice but to raise prices accordingly,” said Phil Woolley, Vice President – Paper Europe. “We will continue to monitor the situation closely and will take every action necessary to maintain supplies to our customers. We cannot however rule out further increases or surcharges being required at this stage.”

Sonoco Alcore S.a.r.l. is wholly owned by Sonoco (NYSE:SON) and operates 24 tube and core plants and five paperboard mills in Europe.

About Sonoco

Founded in 1899, Sonoco (NYSE:SON) is a global provider of consumer, industrial, healthcare and protective packaging. With net sales of approximately $5.6 billion in 2021, the Company has approximately 22,000 employees working in more than 300 operations in 32 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 2022 as well as being included in Barron's 100 Most Sustainable Companies for the fourth-consecutive year. For more information on the Company, visit our website at www.sonoco.com.

 

FAQ

What price increase did Sonoco announce on recycled paperboard?

Sonoco announced a price increase of €70 per tonne on all recycled paperboard grades.

When will the price increase for Sonoco's recycled paperboard take effect?

The price increase will take effect for shipments made on or after September 1, 2022.

What is the reason behind Sonoco's price increase?

The price increase is due to the significant escalation in European energy costs and uncertainty in the market.

How is Sonoco addressing the rising energy market conditions?

Sonoco is monitoring the energy market closely and taking necessary actions to maintain supplies to customers.

Who owns Sonoco-Alcore S.a.r.l.?

Sonoco-Alcore S.a.r.l. is wholly owned by Sonoco, which is listed on NYSE as SON.