The Reels Division of Sonoco (NYSE:SON) today announced it is implementing a general price increase for both new and recycled molded wooden plugs in the United States and Canada. Sonoco has not increased prices for its plug products since 2011. The price increase is expected to be in the range of 6-8%. “This increase is necessary to capture inflationary pressure that has entered the market over the past 6 years across a range of operational and material inputs, including energy, corrugated medium, transportation costs and raw materials,” said Dave Winebarger, division vice president and general manager for Sonoco’s U.S. and Canada reels and plugs operations. “Recovering these rising costs will allow us to continue providing high-quality, value-adding products to our customers.”
Metsä Board, part of Metsä Group, aims at strengthening its position as Europe’s leading producer of folding boxboard and plans to increase its production capacity.
The company has started pre-engineering for increasing the annual production capacity of folding boxboard machine BM1 at the Husum mill in Sweden by approximately 200,000 tonnes. The pre-engineering phase includes also an evaluation of the mill port’s capacity for increased volumes of raw materials and finished goods.
The planned investment would further strengthen Husum BM1’s position as the biggest folding boxboard machine in Europe. The final investment decision is subject to the results of the pre-engineering phase. The readiness to make the final investment decision is expected to be achieved in the summer of 2021 and the ramp-up of the additional capacity would start in 2023.
“We have experienced good growth in our safe and sustainable folding boxboards in recent years. The high utilization rate of our current production capacity is a limiting factor for future growth. In order to continue profitable growth together with our customers, we are now looking at a potential capacity expansion. Husum as an integrated site would be an efficient platform for further development of Metsä Board’s paperboard business,” says Mika Joukio, CEO of Metsä Board.