Sonoco Implementing Price Increase for Uncoated Recycled Paperboard

Rhea-AI Summary

Sonoco (NYSE: SON) announced a $70 per ton price increase for all grades of uncoated recycled paperboard (URB) in the U.S. and Canada, effective September 7, 2021. This decision responds to strong demand within the company’s mill network, resulting in historic order backlogs, and ongoing inflationary pressures affecting papermaking costs. Founded in 1899, Sonoco serves global brands with approximately $5.2 billion in annual net sales and a workforce of 19,000 employees across 34 countries.

Positive

• Announcing a $70 per ton price increase for uncoated recycled paperboard indicates strong demand.
• Price increase could help alleviate order backlogs and improve profit margins.

Negative

• Continued tight market conditions and unprecedented inflationary pressures suggest potential challenges ahead.

HARTSVILLE, S.C., Aug. 09, 2021 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it is implementing a $70 per ton price increase for all grades of uncoated recycled paperboard (URB) in the United States and Canada, effective with shipments beginning September 7, 2021.

Sonoco said the price increase was in response to continued tight market conditions as strong demand across the Company’s U.S. and Canada mill network has resulted in order backlogs remaining at near historic highs as well as unprecedented inflationary pressures on papermaking.

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 $5.2 billion, the Company has 19,000 employees working in approximately 300 operations in 34 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 was listed as one of Fortune’s World’s Most Admired Companies for 2021 as well as being included in Barron’s 100 Most Sustainable Companies for the third consecutive year. For more information, visit www.sonoco.com.

FAQ

What is the purpose of Sonoco's price increase on recycled paperboard?

The price increase aims to address strong demand and historic order backlogs due to market conditions.

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

The price increase will be effective with shipments beginning September 7, 2021.

How much is Sonoco increasing the price of recycled paperboard?

Sonoco is implementing a $70 per ton price increase.

What are the market conditions prompting Sonoco's price increase?

The price increase is due to tight market conditions and inflationary pressures on papermaking.

What is the annual revenue of Sonoco?

Sonoco has an annualized net sales of approximately $5.2 billion.