Sonoco-Alcore to Increase Paperboard Prices in the EMEA Region

On September 24, 2021, Sonoco-Alcore announced a €50 (£50) per tonne price increase on all recycled paperboard grades sold in its EMEA regions, effective from October 4, 2021.

Rhea-AI Summary

On September 24, 2021, Sonoco-Alcore announced a €50 (£50) per tonne price increase on all recycled paperboard grades sold in its EMEA regions, effective from October 4, 2021. This decision comes in response to rapidly escalating European energy costs, which are expected to remain high throughout the winter. Phil Woolley, Division Vice President – Paper Europe, stated that despite efforts to mitigate these costs, they must now be passed onto the market. Sonoco-Alcore operates 24 tube and core plants and five paperboard mills in Europe, and is wholly owned by Sonoco (NYSE:SON).

Positive

• Price increase of €50 per tonne may help offset rising costs.
• Continued monitoring of energy prices could lead to future adjustments.

Negative

• Escalating energy costs could impact operational profitability.
• Dependence on energy prices poses a risk for future pricing strategies.

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News Market Reaction – SON

In the trading session that priced this news, SON gained 0.88%, reflecting a mild positive market reaction.

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BRUSSELS, Belgium, Sept. 24, 2021 (GLOBE NEWSWIRE) -- Sonoco-Alcore S.a.r.l. announces today that due to the rapidly escalating cost of European energy it will raise prices by €50 (£50) / tonne on all recycled paperboard grades sold in the Company’s EMEA regions, effective for all shipments made on or after the 4^th October 2021.

“The unpredicted increases in energy costs seen across all European regions have now reached unprecedented levels and are forecast to remain high throughout the forthcoming winter period. As far as possible, we have tried to mitigate these additional costs but now have no choice but to pass the increases onto the market. We will continue to monitor the situation on a month by month basis and will review in line with future energy price movements,” said Phil Woolley, Division Vice President – Paper Europe.

Sonoco Alcore S.a.r.l. is wholly owned by Sonoco (NYSE:SON) and operates 24 tube and core plants and five paperboard mills in Europe.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the price increase announced by Sonoco-Alcore?

Sonoco-Alcore announced a €50 (£50) per tonne price increase on all recycled paperboard grades.

When will the new prices take effect for Sonoco-Alcore?

The new prices will be effective for all shipments made on or after October 4, 2021.

Why is Sonoco-Alcore raising prices?

The price increase is due to rapidly escalating energy costs across Europe.

What does Sonoco-Alcore's price increase indicate about the market?

It indicates that the company is responding to unprecedented energy costs and is adjusting pricing strategies accordingly.

How many plants does Sonoco-Alcore operate in Europe?

Sonoco-Alcore operates 24 tube and core plants and five paperboard mills in Europe.