LabelPack announces ‘substantial’ price rises

Ahlstrom’s LabelPack division, one of the world's largest suppliers of release base papers and of specialty papers for flexible packaging, wet-glue and self-adhesive labeling, has announced a ‘very substantial’ price increase for all its paper grades as a consequence of raw materials inflation, with bigger increases on the way for USD denominated markets.

In a statement, the company said, ‘The market prices of cellulose pulp, the main raw material for the production of specialty papers, have increased constantly in the last twelve months, with the exception of a short change of direction in the summer of 2003. In the last two months, the prolonged rise of raw material prices lead to a significant net increase of manufacturing cost for specialty papers, even when calculated in Euro. This will still become more severe in the weeks to come, as all major pulp suppliers worldwide have already announced further price increases. At the same time, oil prices have recently grown considerably, making energy more expensive in all European countries where Ahlstrom operates and generating short-term expectations for a rise of
transportation costs.’

Ahlstrom is not the only company affected by the rising cost of raw materials. Rohm and Haas, adhesives and sealants business has announced a price increase for all products including acrylic and vinyl acetate emulsions sold to the pressure sensitive, construction, adhesives, caulks and sealants industries in North America. The increase, which ranges from 4 to 6 per cent, will take effect 15 April 2004 or as contracts allow.  The increase is in addition to the increase implemented on 1 February. The company says the increase is needed 'to cover the continued increases in raw material and Energy costs.'