M-real announces folding-boxboard price hikes

The Finland-headquartered company has revealed that it will increase its folding-boxboard prices by £80 per tonne from 1 October 2009.

It follows shortly after Iggesund Paperboard increased its prices by 20% in the UK in June in an attempt to counteract the affects of the weak pound.

M-real has blamed “unsatisfactory profitability” for the increases.

“As the biggest player in the industry we continue to take responsibility and we are prepared to curtail our production to the extent needed to support our efforts,” said head of consumer packaging Mika Joukio.

Sales and marketing director for Clondalkin’s specialist packaging division Chris Hill told Packaging News that he was disappointed there was to be another increase.

“It makes it difficult for us to pass board increases on, although we will try to do so,” he said. “We do not think it is sustainable to keep going back to our customers and increasing prices. It will increase our search for alternative suppliers.”

Speculation is rife within the industry about whether the remaining folding-boxboard suppliers will follow suit and also increase their prices.

“What tends to happen at the moment is all the other mills will take this opportunity to increase their prices too,” said Alexir managing director Robert Davison.

“Even without price increases we’ve had euro adjustments going on from January,” he added.

Finnish paper and packaging firms M-real and Stora Enso reported an improved performance in its first quarter, although sales were still down on 2008.

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