Sonoco-Alcore to Increase Tube & Core Prices in the EMEA Region

Rhea-AI Summary

Sonoco-Alcore S.a.r.l. has announced an 8% price increase on all tube and core grades in the EMEA region, effective from September 1, 2021. This decision stems from rising costs associated with raw materials, transportation, packaging, energy, and labor. The company, a subsidiary of Sonoco (NYSE:SON), stated that despite ongoing optimization efforts and cost-saving programs, it can no longer absorb these escalating expenses.

Positive

• Sonoco-Alcore is taking proactive measures to maintain business viability in response to rising costs.

Negative

• Inflationary pressures on raw materials and operational costs indicate potential challenges for profit margins.
• The company is unable to absorb rising costs, which may affect overall financial stability.

BRUSSELS, Belgium, Aug. 26, 2021 (GLOBE NEWSWIRE) -- Sonoco-Alcore S.a.r.l. announced today that due to inflationary pressures on the business, it will raise prices by 8 percent on all tube and core grades sold in the Company’s EMEA regions. The increase will be effective for all shipments made on or after the 1^st September 2021.

“We have seen further considerable increases in the cost of raw materials since beginning of the year, and we expect these to further escalate. In addition, we face significant inflationary costs for transport, packaging, energy and labour. We have taken continued efforts to optimize and implemented saving programs but cannot absorb these massive increases anymore,” said Karsten Kemmerling, Division VP - Sales & Marketing EMEA.

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.

FAQ

What is the reason for Sonoco-Alcore's price increase?

Sonoco-Alcore is raising prices by 8% due to inflationary pressures on raw materials, transportation, packaging, energy, and labor costs.

When will the price increase for Sonoco-Alcore products take effect?

The price increase will be effective for shipments made on or after September 1, 2021.

Which products are affected by Sonoco-Alcore's price increase?

All tube and core grades sold in the EMEA regions will see an 8% price increase.

Who is responsible for the announcement regarding the price increase?

Karsten Kemmerling, Division VP - Sales & Marketing EMEA, provided insights into the factors leading to the price increase.

What actions is Sonoco-Alcore taking in response to rising costs?

Sonoco-Alcore has implemented optimization efforts and saving programs but finds it necessary to raise prices due to significant cost increases.