Business

Chesapeake has announced that it will increase its sale prices by approximately 10% as the company continues to be "squeezed from all sides" by rising raw material and energy prices.

Andrew Kohut, Cheseapeake's president and chief executive said that it "is no longer possible" to absorb rising energy and related costs.

"We remain committed to meeting our customers' needs, but price increases for our products are essential to allow us to reinvest for the future," he said.

Chesapeake has more than 45 locations in North America, Europe, Africa and Asia.

Over the past year oil prices have increased from $50 a barrel to $130 today, peaking at $145, while gas and electricity prices more than doubled.

Chemical and ink manufacturers have increased their prices causing the price of latex coatings for cartonboard to increase by as much as 25%.

Cartonboard manufacturers have also imposed surcharges on the price of board to recover exchange rate differences between the euro and stirling.