Forest Products Association of Canada (FPAC) released Innovative, Sustainable, Resilient: Recommendations from Canada’s Forest Sector to Drive Economic Recovery and a Net-Zero Carbon Future. The report, submitted to the federal government, outlines how Canadian forestry workers, forest management, and forest products can help kickstart a green economic recovery. At today’s launch, FPAC President and CEO, Derek Nighbor, issued the following statement: “In the face of rising COVID numbers in most parts of the country, Canadians continue to stare down the biggest health and economic crisis of our lifetimes. Last week’s announcement that the federal deficit is projected to hit $382 billion by March 2021 is a stark reminder of how daunting the recovery effort will be. We need to come together with solutions that will meet the needs of Canadian workers and their families and deliver jobs to communities that need them, while promoting innovation and our move to a lower-carbon economy."
Despite the extremely strong order books the mechanical coated paper profit margins continue to be depressed due to continuing cost creep. Sappi addresses the cost inflation by increasing its LWC and MWC paper grades prices by 4% effective on deliveries from April 1st 2018 for all markets as validities allow. In order to reach sustainable profitability levels subsequent inflationary increases are expected during the year.
Sappi’s sales representatives will be in touch with their customers to agree on the specifics over the following weeks.