PaperlinX group to raise prices in light of rising costs

The operating companies of merchant giant PaperlinX have announced paper price increases of between six and 11% in the face of rising raw material and energy costs.

PaperCo, Robert Horne Group and Howard Smith Paper said they have had to cover the costs of continuing paper manufacturers' increases, which are up by 10%.

Additional fuel costs will also add a further 1% to the overall level of increase. Prices will be increased as of 15 September 2008.

Dave Allen, PaperlinX regional president, said: "Rather than disguise the fuel increase as part of the paper price increase, we want to be open and transparent with customers.

"This will enable us to work with customers to try and mitigate some of the unprecedented levels of increase we are seeing at the moment."

He added that the group would reduce the fuel levy if global energy prices continued to fall.

In a statement, PaperlinX said that despite the significant efficiency initiatives, the impact of the fuel increases has reached a point where it can no longer be absorbed.