Price increases needed in all board and paper business
M-real Corporation Press Release 4.6.2008
Profitability in the board and paper industry has been sliding for a
number of years. Costs have been rising heavily. The increase has
been especially strong in wood and energy prices. At the same time,
sales prices have not compensated for the cost escalation despite
price increases for some grades. It is clear that price increases are
needed to improve profitability.
In Finland, where the folding boxboard production units of M-real are
located, production costs have risen 20 per cent since 2005, annual
cost increase being 6-7 per cent. We have already announced new price
increases in the USD and GBP markets. In the Euro markets the needed
price increase of folding boxboard is minimum 10 per cent at the
first stage. We will revert to the folding boxboard price increases
in the near future.
M-real has announced a price increase for coated magazine papers
between 6-8 per cent depending on product and market, and the
implementation is ongoing.
For uncoated fine papers prices were increased in April and May.
Further actions are under evaluation.
The price increase needs are greatest in coated fine papers. M-real
plans to increase prices of its coated fine papers by a minimum of
EUR 50 per ton. Negotiations are ongoing with customers.
For further information please contact:
Vice President, Investor relations and Communications
Mobile: +358 50 346 0350