Sonoco-Alcore to Increase Prices for Tubes & Cores in the EMEA Region

Rhea-AI Summary

Sonoco-Alcore S.a.r.l. has announced a 7% price increase for paper-based tubes and cores, effective from January 18, 2021. This decision aims to address rising costs that the company has absorbed through optimization efforts. Karsten Kemmerling, Director of Sales and Marketing, emphasized the necessity of this adjustment to secure materials and maintain a robust supply chain. Sonoco-Alcore operates 29 plants and 5 mills across Europe, contributing to Sonoco's overall operations.

Positive

• Price increase of 7% may enhance revenue.
• Measures taken to optimize manufacturing and supply chain.

Negative

• Price adjustments indicate ongoing inflation pressures.
• Absorbing costs previously may affect profit margins.

BRUSSELS, Belgium, Dec. 17, 2020 (GLOBE NEWSWIRE) -- Sonoco-Alcore S.a.r.l. today announced it will raise prices for paper-based tubes and cores by 7%. The increases will be applied individually and depending on product category, effective from shipments beginning on 18 January 2021.

“These adjustments are critical to manage continued increases in cost across the business. To date, we have absorbed these costs by further manufacturing footprint optimisation and supply chain activities, but with continued inflation, we must now pass this on to our customers. To secure materials, we must act quickly so we can maintain the strong supply chain our customers need and value from Sonoco,” said Karsten Kemmerling, Director of Sales and Marketing – Tubes and Cores, Europe.

Sonoco Alcore S.a.r.l. is wholly-owned by Sonoco (NYSE:SON) and operates 29 tubes and cores plants and five paperboard mills in Europe, including a mill and three tube and core converting facilities in Italy.

FAQ

What is the reason for Sonoco's price increase on January 18, 2021?

Sonoco announced a 7% price increase to manage rising costs due to continued inflation.

When will Sonoco implement its price increase for paper-based tubes and cores?

The price increase will take effect from January 18, 2021.

How many plants and mills does Sonoco-Alcore operate in Europe?

Sonoco-Alcore operates 29 tubes and cores plants and 5 paperboard mills in Europe.

Who is the Director of Sales and Marketing for Sonoco-Alcore?

Karsten Kemmerling is the Director of Sales and Marketing for Sonoco-Alcore.

What impact does the price increase have on Sonoco's customers?

The price increase is intended to secure materials and maintain a strong supply chain for customers.