News

Nampak Europe, the paper and plastic packaging manufacturer, has announced a "double digit" price increase following "unprecedented" input costs.

The company, which includes MY Healthcare, Nampak Cartons and Nampak Plastics, said energy, raw materials and fuel costs had escalated considerably and had left it with "no option" but to recover them to ensure its long-term survival and protect jobs.

Nampak Europe managing director Tom Reid said the company was committed to a programme of growth and reinvestment.

"In order to achieve our objectives, it is important that we take a responsible lead by passing on these unavoidable increases to our customers."

Reid said Nampak Europe's board, inks, solvents and polymer prices had risen significantly, its electricity prices had almost doubled, and the cost of fuel was having a "major impact" on transport and distribution. The price rises come in with immediate effect.

Nampak produces medical packaging, cartons and plastics from 16 plants in the UK, as well as others in mainland Europe.

European sales of paper-based packaging rose 5% to £115m and trading income increased by the same percentage to £3.9m in the six months to 31 March 2008.

Sales in Nampak's European plastics business rose 6% to £58m, while trading income was static at £5.7m.

The Nampak group employs more than 20,000 people across the UK, Europe and Africa.