Sonoco Implementing Price Increase for Corrugating Medium

Rhea-AI Summary

Sonoco (NYSE: SON) announced a $50/ton price increase on all domestic and export corrugating medium grades from its Hartsville, S.C. paper mill, effective November 2, 2020. This decision, as stated by Tim Davis, reflects the company's response to changing market demand and extended order backlogs, aligning with trends seen among other North American containerboard producers. Sonoco, founded in 1899, boasts annualized net sales of approximately $5.4 billion and employs around 23,000 individuals in 36 countries.

Positive

• Implementation of a $50/ton price increase indicates strong market demand.
• Alignment with industry trends suggests competitive positioning among North American producers.

Negative

• None.

HARTSVILLE, S.C., Oct. 07, 2020 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it is implementing a $50/ton (USD/ST) increase on all domestic and export corrugating medium grades shipping from its Hartsville, S.C. paper mill. The prices are effective with shipments on and after November 2, 2020.

According to Tim Davis, division vice president and general manager, Paper and Adhesives, U.S./Canada, Sonoco is responding to changes in market demand and extended order backlogs, in line with other North American containerboard producers.

About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $5.4 billion, the Company has 23,000 employees working in approximately 300 operations in 36 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 2020 as well as being included in Barron’s 100 Most Sustainable Companies. For more information, visit www.sonoco.com.

FAQ

What price increase did Sonoco announce?

Sonoco announced a $50/ton price increase on all domestic and export corrugating medium grades.

When does the price increase for Sonoco take effect?

The price increase takes effect on shipments starting November 2, 2020.

What is the reason behind Sonoco's price increase?

The price increase is due to changes in market demand and extended order backlogs.

What company does the ticker symbol SON represent?

The ticker symbol SON represents Sonoco.

How does Sonoco's price increase compare to industry trends?

Sonoco's price increase aligns with similar actions taken by other North American containerboard producers.