Consumables

Sonoco Announces Paperboard, Industrial Converted Products Price Increases

Tuesday 12. January 2010 - Sonoco (NYSE: SON) will increase prices for all uncoated recycled paperboard grades in the United States and Canada by $50 per ton effective with shipments on February 1, 2010. In addition, the Company announced that it will increase prices on all paperboard industrial converted products in the U.S. and Canada by 4.5 percent effective with shipments on February 15, 2010.

“The recent nearly 40-percent increase in the cost of recovered paper, our primary raw material, is unprecedented and a clear reflection of increased demand by recycled mills in the U.S. and Canada and by Asian export markets,” said Harris DeLoach, chairman, president and chief executive officer.

Prices announced recently for Old Corrugated Containers (OCC) in the Southeast U.S. increased in January from $80 per ton to $110 per ton. Sonoco is one of the largest producers of uncoated recycled paperboard in North America and of paperboard tubes and cores and protective packaging.

“With seasonal generation lower than usual and severe weather conditions further impacting supply, we are receiving recovered paper pricing quotes for delivery over the coming weeks that are even higher than recently established prices,” DeLoach added. “It is essential that we begin recovering these higher input costs from our recycled paper and industrial converted products as soon as possible. We will keep a close eye on rising raw material costs and, if necessary, take further pricing actions.”