Business

Sonoco, the global paper and plastic packaging manufacturer, will implement a $40 (£20) per ton average energy surcharge for its uncoated recycled paperboard products shipped in the US and Canada.

The surcharge will be introduced on 14 July.

James Harrell, division vice president and general manager of Sonoco's Paper North America, said: "We have been impacted by dramatic increases in the cost for natural gas and diesel fuel during the previous six months and we expect continued cost pressure for the foreseeable future.

"We are investing in energy conservation and productivity initiatives throughout our paper mill system, but we simply have not been able to offset the magnitude of these higher energy prices and must make appropriate adjustments to reflect these higher costs," he added.