News about across-the-board increases in label stock prices of around 6 and 7 percent made the lead story in the January/February issue of L&NW. Further confirmation of this world-wide situation comes from the Cham Paper Group, one of Europe’s leading manufacturers of papers for pressure sensitive labels, wet glue labels and grades for various technical and packaging applications. The Swiss company says that the cost situation for the paper industry has deteriorated continuously since the beginning of 2004.
Last year the company received only insignificant compensation in the form of price increases. Therefore, given its current state of profitability and with no sign of improvement in future months, Cham Paper will introduce substantial price increases (according to grade and invoiced currency), effective from April 1 this year. It points out that the entire paper industry has serious cause for concern in virtually all cost areas, from energy and raw materials to transport. The company adds that fiber based paper materials have been affected to a lesser degree compared with materials that are more directly oil based, such as films, which have imposed increases of more than 50 percent in less than a year.
Cham Paper Group has a total annual capacity of 260,000 tons of specialty papers produced to ISO 9001 and ISO 14001 quality and environmental certification. It currently owns five production plants in Switzerland, Italy and Norway employing nine papermaking machines.