EUROPAC ANNOUNCES PRICE RISES OF €50 PER TONNE ACROSS ITS RANGE OF PAPERS

  • The rise in the sales price of recycled paper will take effect on 26 June on the Iberian Peninsula and on 17 July in the rest of Europe

  • The rise in kraftliner paper will be applied as from 1 August in all markets

  • Context of solid demand, machines working at full capacity and low European stocks since the start of 2017

Madrid, 22 June 2017.- The Europac Group (Papeles y Cartones de Europa, S.A.) has announced a sales price rise of €50 per tonne across its range of papers. The price rise in the whole range of recycled paper will be applied as from 26 June on the Iberian Peninsula and as from 17 July in the rest of Europe, while the rise in the sales price of kraftliner paper will enter into force on 1 August in all markets.

This upward movement in the paper sales price is a response to the continuation of the market conditions in place since the start of 2017, which already led to rises in the price of recycled paper in February, March and April and in kraftliner paper in January, March and May.

The current market therefore continues to be characterised by extremely solid final demand in a context of paper machines operating at full capacity and European stocks at low levels. The order books for recycled and kraftliner paper are currently at historic highs, while European paper stocks stand at minimum operating levels. With regard to raw materials, wood prices have been stable over the last 18 months, which is likely to continue to be the case until the end of the year, while there has been volatility in the recovered paper market.

Return on investments and management

According to José Miguel Isidro, executive chairman of the Europac Group, "the improvements in efficiency and productivity resulting from the investments and internal management projects conducted in 2015 and 2016, which allowed the group to improve its performance in an adverse market context and to increase its paper production capacity by 40,000 tonnes per year, should be fully reflected in the results for this year".

"That is why", continues the company's executive chairman, "the current market conditions allow us to forecast a significant improvement in the results at the end of the year". The positive trend in demand for paper for packaging in Europe continues to support the process of recovering and improving sales margins.

Further information

Fernando Vidal

+34 91 490 21 60 / +34 629 123 124

fvidal@europacgroup.com

Europac - Papeles y Cartones de Europa SA published this content on 22 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 June 2017 14:39:20 UTC.