European printing and packaging industry set off a new wave of paper price hikes

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Time of issue:2010-07-31
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European printing and packaging industry set off a new wave of paper price hikes

(Summary description)FinnishPaperCo.,Ltd.recentlyannouncedadecisiontoraisepricesagain,whichwillincreasethepriceofcoatedpaperandmagazinepaperby8%andwillbeofficiallyimplementedinearly2009.Atthesametime,papermanufacturerSouthAfricaSapePaperalsosaidthatitwillincreasethepriceofitscoatedhardcoverandmechanicalcoatedpaperfromJanuary1nextyear,withaspecificincreaseof8%to10%.TheFrenchcompanyArjovigenzPaperhasannouncedaplannedpriceincreaseinthefourthquarterof2008.ItisunderstoodthatFenlinPaperCompanyhascontinuouslyraisedpricesin2008.Thepersoninchargeofthecompanysaidthatthepriceincreaseofpaperstillcannotmeettheneeds,sothecompanyisforcedtoraisethepricesofmajorproductsinordertoimproveprofitability.SapePapersaidthatthepaperindustryhasexperiencedunprecedentedcostgrowthinrecentyears,andtheyhavealsoimplementedaseriesofcostreductionandefficiencyimprovementplansthroughoutEurope.ButthesalesandmarketingmanagerofSapeEurope’sprintedpapersaid:“Despitetheseriesofmeasureswehavetaken,westillcannotmaintainastableprofit.Thepaperpricehasfallen,butourinputcostscontinuetoriseandweareSeeinganimprovementtrendin2009."ThiswaveofpaperpricehikeshasrespondedstronglyintheBritishprintingmarket.AndyRaddell,directorofsalesandmarketingatRealDigitalInternationalintheUK,said:"Forcedpriceincreasesmayonlyreducepaperorders,andothersolutionsfromprintinghouseswillfurtherincreasepressureonpapermills."ThemanagingdirectorofcommercialprintinghouseFermanaghsaid:"Obviously,anyincreaseinpriceswillmakeoperationsmoredifficult,anditisdifficultforustomaintainoperationsforalongtimewithoutpassingtheincreasedcoststoourcustomers.Thesameappliestopapermillsandprintingcustomers.Theproblem."Hebelievesthatthebalancebetweencuttingexpenses,increasingproductivityandreducingcostsisnecessary.Accordingtoreports,theBritishDominoPrintingTechnologyCompanypredictsthatitwillbeextremelychallengingin2009,althoughaccordingtoitsyear-endreport,thecompany'stotalrevenuethisyearexceededthe250millionpoundmarkforthefirsttime,anincreaseof9%fromthe2007230millionpounds.TheNationalInstituteforEconomicandSocialResearch(NIESR)publishedareportonDecember10,sayingthattheBritishGDPinthethreemonthsofSeptember,OctoberandNovembershrankby1%.TheBritisheconomymayhavebeeninthecurrentquartersince1990.Thefastestrateofcontraction,whilethedegreeofrecessionintensified.AsofOctober2008,theUK’spre-taxprofitforinkjetandlaserprintermanufacturershasdecreasedby20%,andsomeprintinghousesreflectthattheircustomershavereducedprintingdemand.Theincreaseinpaperpriceshasledtoasharpincreaseinprintingcosts,andtheoveralleconomicsituationisdeteriorating.TheBritishprintingindustryin2009willbea"severewinter"year.

Categories:Industry News
Author:
Origin:
Time of issue:2010-07-31
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Finnish Paper Co., Ltd. recently announced a decision to raise prices again, which will increase the price of coated paper and magazine paper by 8% and will be officially implemented in early 2009. At the same time, paper manufacturer South Africa Sape Paper also said that it will increase the price of its coated hardcover and mechanical coated paper from January 1 next year, with a specific increase of 8% to 10%. The French company Arjovigenz Paper has announced a planned price increase in the fourth quarter of 2008.

It is understood that Fenlin Paper Company has continuously raised prices in 2008. The person in charge of the company said that the price increase of paper still cannot meet the needs, so the company is forced to raise the prices of major products in order to improve profitability .

Sape Paper said that the paper industry has experienced unprecedented cost growth in recent years, and they have also implemented a series of cost reduction and efficiency improvement plans throughout Europe. But the sales and marketing manager of Sape Europe ’s printed paper said: “Despite the series of measures we have taken, we still cannot maintain a stable profit. The paper price has fallen, but our input costs continue to rise and we are Seeing an improvement trend in 2009. "

This wave of paper price hikes has responded strongly in the British printing market. Andy Raddell, director of sales and marketing at Real Digital International in the UK, said: "Forced price increases may only reduce paper orders, and other solutions from printing houses will further increase pressure on paper mills."

The managing director of commercial printing house Fermanagh said: "Obviously, any increase in prices will make operations more difficult, and it is difficult for us to maintain operations for a long time without passing the increased costs to our customers. The same applies to paper mills and printing customers. The problem. "He believes that the balance between cutting expenses, increasing productivity and reducing costs is necessary.

According to reports, the British Domino Printing Technology Company predicts that it will be extremely challenging in 2009, although according to its year-end report, the company's total revenue this year exceeded the 250 million pound mark for the first time, an increase of 9% from the 2007 230 million pounds.

The National Institute for Economic and Social Research (NIESR) published a report on December 10, saying that the British GDP in the three months of September, October and November shrank by 1%. The British economy may have been in the current quarter since 1990. The fastest rate of contraction, while the degree of recession intensified.

As of October 2008, the UK ’s pre-tax profit for inkjet and laser printer manufacturers has decreased by 20%, and some printing houses reflect that their customers have reduced printing demand. The increase in paper prices has led to a sharp increase in printing costs, and the overall economic situation is deteriorating. The British printing industry in 2009 will be a "severe winter" year.

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