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Corporate
Pregis explains price increases
Pregis Protective Packaging Europe announces a price increase up to 10% depending on product, as a result of unprecedented rises in the costs of raw materials, freight and energy. In addition, a fuel surcharge programme is also to be implemented in direct response to the escalating and volatile oil price.
Over the last 12 to 18 months, the major drivers below have played a significant part in our rising costs:
Intermediate Crude Oil:
From $63.40/barrel in May 2007 to $139/barrel in June 2008; an increase of 119,24%.
Low Density Polyethylene Resin Large Buyer Price:
From €1135/barrel in January 2007 to €1350/barrel in June 08; an increase of 18,94%.
Iso-Butane:
From €0,585/kg in May 2007 to €0,749/kg in May 2008, an increase of 28,03%.
Fuel costs:
From €0,946/liter in January 2007 to €1,333/liter (diesel) in June 08; an increase of 40,90% .
Natural Gas costs:
From 0,049 KWH/€ in April 2007 to 0,052 KWH/€ in April 08; an increase of 6,12%.
President of Pregis Protective Packaging Europe, Fernando De Miguel, said that while the company continued to make every effort to control all aspects of its manufacturing and distribution costs, the record-setting rises in raw material prices over recent months had made the increases inevitable.
“Despite exceptional achievements in Operational savings and the reduction in SG&A, these escalating costs are significantly impacting our supply chain” he explained. “By partially recovering these, we will be able to continue to focus on both providing value-added services and premier innovation to our customers.”
