Sonoco (SON) today announced price increases of 4.2 percent on fabricated packaging assemblies containing EPS and/or PE and corrugated materials, 3.7 percent on all EPS parts and components, and 15 percent on corrugate packaging. The increases will be effective January 1, 2014, and are necessary to adjust pricing for inflationary input costs incurred since mid-2012.
"Since Sonoco's acquisition of Tegrant, we have worked hard to provide price stability to our customers. To this end, we have been successful in maintaining stable pricing for more than a year," said Greg Powell, vice president, Consumer Protective Solutions. "Our procurement and productivity initiatives have helped mitigate or otherwise reduce the impact of increases in resin costs, corrugated (linerboard) and energy. However, a portion of these costs have become unavoidable and are now part of our ongoing cost structure. As a result, we are faced with the need to adjust 2014 prices to reflect these higher input costs."
Sonoco is a leading protective packaging solutions and component provider with 28 manufacturing and fabrication facilities located throughout the U.S. and Mexico. Sonoco supplies material-neutral packaging solutions components to customers in the automotive, appliance, medical, technology, HVAC, kitchen and bath and furniture industries.
Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $4.8 billion, the Company has more than 19,900 employees working in 347 operations in 34 countries, serving some of the world's best known brands in some 85 nations. Sonoco is a proud member of the 2013/2014 Dow Jones Sustainability World Index