Pregis' Protective Packaging European Business Announces 8% Price IncreaseBy Pregis Corporation, PRNE
Wednesday, April 6, 2011
WELLEN, Belgium, April 7, 2011 - Pregis Protective Packaging Europe is announcing an 8% price increase
across all of its products and equipment, effective May 1, 2011. The price
increase affects Pregis customers in all European countries.
In making the announcement, Kevin Baudhuin, global president of Pregis
Protective Packaging, stated that the latest price increase is necessary to
compensate for sharply higher costs, coupled with continued volatility in raw
material and fuel costs due to political unrest in multiple Middle Eastern
and North African countries.
"Raw material price increases are compressing operating margins to an
unsustainable level. Immediate recovery of a portion of these soaring costs
is necessary so that Pregis can continue developing innovative solutions
designed to help its customers grow," Baudhuin said.
Crude-oil futures surged to their highest level in 2 1/2 years last
Friday. Strong global demand is expected to continue through the remainder of
2011, further stressing available oil resources. Low-density polyethylene
resin, which is used extensively to create protective packaging materials,
also rose to a historical high in March. Political uncertainty in oil
producing regions is expected to be an ongoing issue.
"We continue to work hard at controlling all aspects of our manufacturing
and distribution costs to minimize the impact of these rising costs on our
customers," Baudhuin said. "This includes driving continuous productivity
improvements, as well as looking at petroleum alternatives and other
appropriate raw material substitutes to help mitigate price swings to our
Pregis Protective Packaging Europe operates eight manufacturing
facilities in eight countries. The operating division specializes in
providing protective packaging solutions for a wide variety of products and
Pregis Corporation is a leading global provider of innovative protective,
flexible, and foodservice packaging and hospital supply products. The company
offers packaging and product solutions for a wide variety of consumer and
industrial market segments including food and foodservice, healthcare,
agriculture, automotive, furniture, electronics, construction, fulfillment,
catalog and military/aerospace. The specialty-packaging leader currently
operates 47 facilities in 18 countries around the world. For more information
about Pregis, visit www.pregis.com.
Josephine Fish of Pregis Corp., +1-847-597-9356, jfish at pregis.com; or Francisco Gaspar of Pregis Protective Packaging Europe, +32-497-976-820, fgaspar at pregis.com
Tags: April 7, belgium, Pregis Corporation, Wellen