RPC pushes for price rises

Chief executive Ron Marsh (pictured) made the pledge after the group reported stable sales for the six months to 30 September 2006 despite big rises in oil and electricity costs.

The rigid plastics specialist recorded sales of £308.4m, compared with £307.8m for the same period in 2005.

Underlying operating profit, taking into account restructuring costs and the impact of acquisitions, rose £700,000 to £19.1m. But pre-tax profit fell from £13.3m to £12.9m.

Marsh told Packaging News that RPC "can't continue to absorb" increases in the costs of inputs.

"I don't think we are unique in going for price increases," he said. "The industry is suffering and everybody in rigid plastics has been having a difficult time, particularly in Europe."

He also said consumers in Europe were "accustomed to a particularly high quality of packaging" and there was "intensive competition".

RPC was well placed to benefit, though, because many other groups had exited the rigid plastics market but it had been making acquisitions.

Marsh also said RPC would continue to monitor emerging markets for business opportunities.

"While we are aiming to consolidate the industry in Europe, it would be foolish to consign ourselves just to Europe," he added.

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