M-real set to put prices up

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23 February 2007 — Amsterdam (NL): M-real office papers business area has announced a price increase effective from 1 April 2007 across all regional markets.

The increase will be between 5 and 8 percent, depending on the grade, and will be applied to all office paper grades in cut-size and reels.

 

The rise has been attributed to the urgent need to restore a sustainable margin on office papers products during a time in which both the company and industry has experienced a prolonged period of low prices as well as increasing raw material and energy costs.

 

According to M-real, increasing demand and a tightening of supply has given it the opportunity to recover some margin and redress the balance between prices and costs.

 

Simon Guffogg, marketing director, said: "We are experiencing strong demand for our brands and this price increase will help address the unsustainable margins that have resulted from a long period of low prices in the office papers market."

 

Earlier this month, M-real rejected a €500 million ($649 million) offer from UPM for a 15 percent stake in pulp producer Botnia.