Arjowiggins follows Sappi's lead on paper price rises

By Pamela Mardle, Friday 15 February 2013

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Arjowiggins Graphic is to implement a price increase across its woodfree coated papers from 1 April.

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The paper manufacturer said that rising costs and unfavourable exchange rates had forced the paper manufacturer to announce a £40 per tonne price increase, equal to approximately 6%, for all its customers across the related paper grades.

The rise will impact woodfree coated substrates across the Arjowiggins Graphic porfolio including Satimat, Maine Gloss and Chromomat. Recycled papers will not be affected.

Arjowiggins Graphic national key account manager Julian Long said that customers had been consulted about the price rise.

The rise follows Sappi’s recent announcement of its second price increase of the year across its coated fine papers.

Long said: "We all need [a price rise]. Most of our costs continue to march upwards and now in the UK, there is an issue with exchange rates working against us."

However, he said that currency fluctuations had "cushioned" its customers from price rises at the back end of last year when exchange rates had worked favourably for the company, which had enabled Arjowiggins Graphic to avoid passing on cost increases.

Surprisingly, Long said that pulp price rises were not as much of an issue as the three main issues of concern: energy, transport and chemicals.

He added that there had been significant and non-recoverable price increases over the past 12 to 18 months in those areas.


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