Sappi proceeds with 10% price increase for woodfree coated sheets, reels in September, October, will place emphasis on raising indent prices to restore sustainable business model

JOHANNESBURG , August 29, 2011 (press release) – Sappi Fine Paper Europe is proceeding with its announced 10% price increase for woodfree coated sheets and reels in September/October. Over recent months it has become apparent that indent prices for sheet business in particular are heavily subsidized and at current raw material prices are generating structural losses. Moreover, because indent prices do not cover the cost of service involved anymore, they also undermine the fundamental role merchants’ are fulfilling with deliveries out of their regional warehouses. This must be corrected quickly and whilst Sappi will raise its woodfree coated prices generally, we will put particular emphasis on raising indent prices in order to restore a sustainable business model.

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