MARIETTA, Ga., June 24 /PRNewswire/ -- Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company , today announced price increases for its coated unbleached kraft (CUK) grades to cover higher costs for mill inputs, including fiber, energy and chemicals. The Company also announced that it would set new freight allowances.
Graphic Packaging will increase the price of its Pearl-Kote(R) and Omni-Kote(R) coated unbleached kraft paperboard used for food packaging, and Aqua-Kote(R) paperboard used for beverage carriers, by $40 per ton, effective with shipments on or after August 1, 2008.
"Given the rapidly rising price of crude oil and resulting higher costs for key manufacturing inputs like fiber, energy and chemicals, we are responding quickly to offset the imbalance with various actions, including price increases for paperboard," said David W. Scheible, President and Chief Executive Officer.
"Additionally, the rapid escalation of transportation lane and fuel surcharge rates makes it necessary for the Company to implement new freight allowances. Historically, paper manufacturers have borne the full amount of freight to their customers. Today's market dynamics require us to change this approach to remain competitive and to continue to deliver high-quality, innovative packaging to our customers, while also providing positive returns for our shareholders," Scheible said.
Forward Looking Statements
Statements of the Company's plans regarding price increases and freight allowances in this release constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's present expectations. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made and the Company undertakes no obligation to update such statements. Additional information regarding these and other risks is contained in the Company's periodic filings with the SEC.
About Graphic Packaging Holding Company
Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company , headquartered in Marietta, Georgia, is a leading provider of packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The Company is one of the largest producers of folding cartons and holds a leading market position in coated-recycled boxboard and specialty bag packaging. The Company's customers include some of the most widely recognized companies in the world. Additional information about Graphic Packaging, its business and its products is available on the Company's web site at http://www.graphicpkg.com/ .
