Consumer packaging provider Sonoco has announced plans to increase prices for all paperboard tubes and cores that are sold in the US and Canada by a minimum of 8%.
This will be effective with shipments on and after 13 May 2020.
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The increment, which is the first in nearly two years, is taken considering the rising costs for recycled paperboard, the primary raw material used to produce tubes and cores.
Sonoco US and Canada Tubes and Cores division vice-president and general manager Doug Schwartz said: “Along with rising paper prices, we have experienced continued price escalation in other input costs, which are putting cost pressures on Sonoco that we are simply unable to absorb.
“Sonoco has been deemed an “essential supplier” during the Covid-19 pandemic and we take this responsibility seriously. We have taken added steps to ensure our ability to maintain continuity of supply to meet our customers’ critical needs.”
In a separate development, Sonoco said it is implementing a $50 per tonne price increase for all grades of uncoated recycled paperboard (URB) in the US and Canada, for all shipments beginning 13 May.
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By GlobalDataThe move comes as the company experiences inflation on input costs such as starch and other papermaking chemicals, labour and fringes, repair costs and repair materials.
Recently, Sonoco’s board of directors gave clearance to enhance its uncoated recycled paperboard (URB) mill system in the US and Canada. The board approved an $83m investment for the initiative.
The majority of this investment will be used to transform its corrugated medium machine (No. 10 machine) in Hartsville into a URB machine with production capacity of about 180,000t a year.
