Brussels, 13 February 2013
After correcting our prices for coated fine paper to some extent during the first quarter 2013, following the significant fall in prices during the last months of 2012, the continuing rise in input costs means that current profitability has by no means reached acceptable levels. While we expect industry demand to improve from the low levels in the beginning of the year, the unprecedented rise in input costs (pulp, chemicals and transport costs) entirely outstrips the benefits from our price improvements and cost reduction programs so far. As a result Sappi is obliged to raise its prices for coated fine papers for the second time this year since current price levels are unsustainably low.
Sappi Fine Paper Europe will therefore increase its prices for all coated fine paper sheets and reels by 5 - 7% as from the 1st of April 2013. In the event that market conditions mean that commercial downtime needs to be taken at its coated mills during this time Sappi will not hesitate to do so, since the overwhelming priority is to get the business back to a sustainable profitability level.
ENDS
