The price hike will be implemented in the UK and Ireland in the second quarter of 2008 with no cost improvements expected in the foreseeable future.

M-real UK & Ireland regional director Andrew Gunman said the market landscape for magazine paper supply to the UK "is changing rapidly".

He added that a major dip in the exchange rate "has severely impacted upon what are already razor-thin mill margins" in addition to increases in wood, energy and other costs that "continue to worsen".

Gunman concluded demand for magazine paper "remains exceptionally strong overall" with price increases "needed to maintain continuity of supply."

M-real recorded sales in 2007 of €4.4bn (£3.37bn). Included in M-real's magazine range are Galerie coated papers, which include Galerie Lite, Galerie Brite and Galerie Fine.