Zanders, a German manufacturer of speciality papers and boards developed especially for labels, packaging and graphical applications, is to be the first paper producer to introduce a raw material surcharge intended to at least partially offset the pressure of further price increases for raw materials.
The surcharge will be four to seven percent, depending on the product, and is effective for all deliveries from May 14 this year.
The company explained that the pressure of further price increases on raw materials is having a dramatic effect on global paper production. This applies to chemicals as well as energy and transport, but especially for pulp. Analysts do not see any decrease in the forthcoming period, it noted, and the industry ‘must be prepared to face these increases throughout 2018’. A calming of the prices is expected from the end of 2018.
Zanders managing director Dr Lennart Schley said: ‘This raw material surcharge should make it clear that this is not a regular price increase, as is common in any industry sector, but rather the compensation for an unprecedented cost explosion in the raw material market, especially in pulp.
‘We will reduce the surcharge as soon as world market prices for the raw materials concerned fall again. In the spirit of good partnership with our customers, our goal is to go through this extraordinary phase together and to abolish the surcharge completely in 2019.’
The Zanders sales team will be in contact with their customers to provide them with further details about the implementation of the raw material surcharge.