The rise will be implemented from 15 May 2008.
Guy Mallinson, business director in charge of European sales for Iggesund, said: "The continuous rise of costs of raw materials and energy are no longer sustainable without these being reflected in our prices, at least in part."
Iggesund's announcement is the latest price increase by the industry. Last month, Scholle Packaging revealed that it was raising prices across its flexibles range by 12%.
Iggesund Paperboard, part of the Holmen Group, makes virgin fibre-based board at its mills in Iggesund, Sweden, and Workington in England.
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