Sonoco Protective Solutions Announces Price Increase
HARTSVILLE, S.C., Feb. 14, 2014 /PRNewswire/ -- Sonoco (NYSE: SON) today announced that Sonoco Protective Solutions will be increasing prices, as contracts allow, from six percent to 12 percent, effective Feb. 15, 2014. The increases, which are in addition to any previously announced increases, are necessary to adjust pricing for inflationary input costs incurred as a result of continued escalating raw material and energy costs over the last 12 months. The announced increases will impact all of Sonoco Protective Solutions' customer base.
"Sonoco is committed to creating and maintaining a mutually beneficial partnership with our customers," said Vicki Arthur, vice president, Sonoco Protective Solutions. 'We continue to work diligently to control input costs through ongoing manufacturing and procurement productivity initiatives. These efforts have helped mitigate some rising costs in the marketplace. However, continued increases in the costs of natural gas, feed stocks and raw materials have made a portion of these increases unavoidable and a part of our ongoing cost structure. Therefore, Sonoco will need to raise prices in order to reflect the higher raw material, energy and manufacturing costs."
Sonoco is a leading protective packaging solutions and component provider with 28 manufacturing and fabrication facilities located throughout the U.S. and Mexico. Sonoco supplies material-neutral packaging solutions components to customers in the automotive, appliance, medical, technology, HVAC, kitchen and bath and furniture industries. For more information about Sonoco's products or to learn more about current pricing, please visit the Company's website at www.sonoco.com or contact Sonoco Protective Solutions at +800-289-9966.
Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $4.8 billion, the Company has more than 19,900 employees working in 347 operations in 34 countries, serving some of the world's best known brands in some 85 nations. Sonoco is a proud member of the 2013/2014 Dow Jones Sustainability World Index. For more information on the Company, visit our website at www.sonoco.com.