News

The Smurfit Kappa Group (SKG) is to increase the price of white-top and brown Kraftliner in the UK and Ireland from 1 July to recover high input and exchange rate costs.

SKG said it aimed to raise the prices by US$50 (£25) per tonne for both products.

The firm added that it is necessary to increase prices to recover rising energy, chemical and wood costs, as well as to counter the devaluation of the pound against the euro.

However, SKG said that the move reflected good demand for brown and white-top Kraftliner in Europe.

In May SKG reported a 45% increase in pre-tax profit to €61.6m (£48.7m) for the three months to 31 March, buoyed by price recovery from corrugated packaging and its Latin American business.

In March it announced the permanent closure of its Valladolid recycled containerboard mill in Northern Spain, which has a capacity of 130,000 tonnes.

SKG also said that it would reduce 2008 production by up to 180,000 tonnes through market-related downtime, to be taken primarily in the first half of the year.

* Finnish paper and board manufacturer M-real has increased the prices of its folding boxboard by a minimum of 10% in European markets. It said it expected further price rises after the summer.

M-real said production costs have risen 20% since 2005 in Finland, where the company's folding boxboard production is located.