Brussels, 09 January 2013
PRICE RISE TO RESTORE MARGINS.
Sappi Fine Paper Europe today confirmed it is proceeding with its previously announced price increase for woodfree coated sheets and reels as per January/February 2013. Over recent months it has become apparent that the decline in Indent prices for woodfree coated sheets over the last few months means that this business is now heavily subsidized and at current raw material prices is generating structural losses. Moreover, because indent prices do not cover the cost of service involved anymore, they also undermine the fundamental role merchants are fulfilling with deliveries out of their regional warehouses. This must be corrected quickly and whilst Sappi will raise its woodfree coated prices generally, we will put particular emphasis on raising indent prices in order to restore a sustainable business model.