Sonoco Announces Price Increase for Paperboard Tubes and Cores

Rhea-AI Summary

Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard tubes and cores, effective March 1, 2022, in the U.S. and Canada. This decision is driven by ongoing market tightness, limited supply of paperboard, and rising inflationary costs for raw materials. Doug Schwartz, the Division VP, emphasized the company's commitment to quality and service amidst these challenges. Sonoco is North America's largest producer of paper-based tubes and cores, serving various industries including paper and textiles.

Positive

• Strong market position as North America's largest producer of paper-based tubes and cores.
• Commitment to maintaining product quality and customer service despite rising costs.

Negative

• Ongoing market tightness and supply chain issues.
• Inflationary pressures affecting raw material costs.

News Market Reaction – SON

-1.18%

-1.18% Session move

In the trading session that priced this news, SON declined 1.18%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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HARTSVILLE, S.C., Jan. 24, 2022 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it will raise the price for all paperboard tubes and cores by a minimum of 6 percent, effective with shipments in the United States and Canada, on or after March 1, 2022.

“Ongoing market tightness, limited paperboard supply and additional inflationary cost pressures to our primary raw materials (uncoated recycled paperboard and adhesives) make this increase necessary,” said Doug Schwartz, Division Vice President and General Manager, North America Tubes and Cores. “Despite these market and supply chain challenges, we remain committed to maintaining the quality and service that our customers have become accustomed to when working with Sonoco.”

Sonoco is the largest producer of paper-based tubes and cores in North America, which are used to serve the paper, plastic film, textile and tape and specialty industries. For more information about Sonoco’s complete line of paperboard tubes and cores or to learn more about current pricing, please visit the Company’s website www.sonoco.com or contact the Company at 800-377-2692.

About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global provider of consumer, industrial, healthcare and protective packaging. With annualized net sales of approximately $5.5 billion, the Company has 19,000 employees working in approximately 300 operations in 34 countries, serving some of the world’s best-known brands in some 85 nations. Sonoco is committed to creating sustainable products, services and programs for our customers, employees and communities that support our corporate purpose of Better Packaging. Better Life. The Company was listed as one of Fortune’s World’s Most Admired Companies for 2021 as well as being included in Barron’s 100 Most Sustainable Companies for the third consecutive year.

FAQ

What is the reason for Sonoco's price increase on paperboard tubes and cores?

Sonoco is raising prices due to ongoing market tightness, limited paperboard supply, and inflationary cost pressures.

When will Sonoco's price increase for paperboard products take effect?

The price increase will be effective on or after March 1, 2022.

What percentage is Sonoco increasing the price of its paperboard tubes and cores?

Sonoco is increasing the price by a minimum of 6%.

Who is the Division Vice President of North America Tubes and Cores at Sonoco?

Doug Schwartz is the Division Vice President and General Manager for North America Tubes and Cores.

What industries do Sonoco's paper-based tubes and cores serve?

Sonoco's tubes and cores serve paper, plastic film, textile, tape, and specialty industries.