Sappi Europe is set to hike prices for its coated mechanical paper portfolio as of the start of next year in response to high costs.
Sappi Europe has announced a price increase initiative for coated mechanical reels (CMR). The price hike of 5-7 per cent is to be implemented with effect from 1 January 2026. With this Sappi is striving to mitigate the impact of a "continued escalation in key input costs" and ensure the long-term profitability of its assets.
"Despite significant internal efficiency programs and cost-saving initiatives, the industry continues to face a structurally elevated cost environment. Costs related to energy, transport, labour, chemicals, and fibre remain at levels that materially impact production economics," the company announced.
Sappi Europe produces coated mechanical reels at the Kirkniemi mill in Finland. The mill houses three paper machine with a total production capacity of 750,000 tpy of LWC and MWC. However, the company has already decided to permanently shut down the PM 2 at the end of the year, reducing production capacity by 175,000 tpy going forward.
According to Sappi, a significant number of assets in the market for coated mechanical reels are at risk. The price increase will support the company's continued ability to invest in asset reliability, product development, and capacity stability, the company said.
Correction, 7 November, 3:30 pm CET. An earlier version of this article incorrectly stated that PM 3 at the Kirkniemi mill was being permanently idled. The correct information is that PM 2 is being closed, while PM 1 and PM 3 remain in operation. We apologise for the error.
