Arjowiggins Graphic announces price increase

Arjowiggins Graphic has said it will increase the price of its coated woodfree and uncoated woodfree products by between 6-9% as of September.

The paper manufacturer said it will increase the price of its coated woodfree papers, sheets and reels by "at least 6%", and its uncoated woodfree papers sheets and reels "by at least 9%".

The decision follows a string of rises in energy, wood and transportation costs that form major parts of the industry's cost base.

David Cook, managing director of Arjowiggins Graphic, said that, at the moment, there are no further plans to increase prices.

"However, the last 18 months has taught us that the market can fluctuate rapidly making it hard to make firm predictions," he warned.

"For instance, events such as the Chilean earthquake can have a far reaching impact on the paper supply chain."

He added that raw material costs are "a major consideration", as are rising energy and transportation costs.

"We also need to be aware of the very low return on capital in the overall paper industry, which is currently leading to a lack of investment and indeed, capacity closures," he said.

Cook said the company "does everything that we can to delay the actual increase implementation date to allow forward buying from our customers".

Elsewhere, Mitsubishi HiTec Paper has also announced price increases for its thermal papers dedicated to point-of-sale and label applications.

The company has said it will announce price increase by 10% worldwide as of 1 September.

In a statement, the company said that the price increase was "inevitable". The company has had to react to the "ongoing strong rise of the prices for freight costs and raw materials".