DEERFIELD, Ill., March 9, 2011 /PRNewswire/ -- Pregis Protective Packaging North America is announcing an 8% price increase, effective April 1, 2011. Additionally, the previously-implemented fuel surcharge will continue on all products sold in North America.
In making the announcement, Kevin Baudhuin, global president of Pregis Protective Packaging, stated that the latest price increase is necessary to compensate for the continued volatility in raw material and fuel costs due to the political unrest in the Middle East and Northern Africa.
"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.
In recent weeks, the political unrest in oil-producing nations has driven up crude-oil futures to their highest level in 2 1/2 years. Further, crude prices have risen more than 23% since the unrest in Libya began in mid-February. An estimated 1 million barrels of oil per day have been removed from the market due to the volatile political situation.
"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 looking at petroleum alternatives and other appropriate raw material substitutes to help mitigate price swings to our customers."
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.
SOURCE Pregis Corporation