Henkel, Sonoco blame price hikes on spiralling raw material costs
The German-based company said last week that the 15-20 per cent tariff rises would be introduced with immediate effect or as contracts allow - and could even be higher in some cases. The firm cited "the relentless rise in raw materials and packaging” as the reason behind the price hike.
“With immediate effect or as existing contracts allow Henkel implements 15 to 20 per cent price increases for certain product groups of its industrial adhesives for the packaging, consumer goods and construction industry in Europe; for some specific product categories the increases may even exceed the mentioned range”, said a company statement.
Henkel said it was introducing the price increases to compensate for the ongoing raw material price rises and said it felt compelled to take the step to ensure continued delivery of products to its current standards.
The company’s Packaging, Consumer Goods & Construction Adhesives division mainly makes hotmelt, polyurethane and water-based products for packaging, labelling and paper converting.
Sonoco-Alcore price rises
US packaging giant Sonoco also blamed rising raw material costs as the reason behind its decision to increase European prices for all uncoated recycled paperboard (URB) grades.
Releasing the statement through its Italian subsidiary, Sonoco-Alcore S.a.r.l, the company confirmed prices on all URB grades would climb by €40, or ₤35, per metric ton, effective with shipments on October 18, 2010.
"This price change is unfortunately unavoidable,” said Sonoco-Alcore vice president Eddie Smith. “Over the past quarter, we have seen a severe increase in the cost of starches and chemicals as well as an overall tightness of raw material supply and URB in the market.”
Sonoco-Alcore operates 30 tube and core plants and six paper mills in Europe.
