Sonoco will increase the base price of its nailed wood reels by 23 percent, effective April 3, 2011. For most customers, however, the net impact will be 4 percent vs. 2010 prices. The additional 19 percent increase in base price is derived from a surcharge on lumber implemented in March 2010 which will now be rolled into the base price.
In addition to the increase in the base price, Sonoco has implemented a 1 percent fuel surcharge and announced it will leave surcharge mechanisms in place through 2011 to recover rising costs associated with lumber and plywood. The fuel surcharge will be effective with reel shipments made on or after March 7, 2011.
"Fuel, lumber, steel and plywood prices have all been increasing steadily," said James Harrell, vice president of Sonoco’s Industrial Converting Division. "These materials comprise the majority of our reel costs and we’ve only been able to partially offset these inflationary expenses through continuous productivity improvement. We have little choice now but to adjust our price and cost recovery mechanisms to reflect recent inflationary trends."
News within the industry of pulp and paper, Aug, 31 2025
