Sonoco to Add Energy Surcharges to North American Tube and Core Shipments
Sonoco (NYSE: SON), one of the largest diversified global packaging companies, will implement an energy surcharge for all of its tube and core products shipped in the United States and Canada, it was announced today by John Colyer, Sonoco’s vice president, IPD North America. The surcharge will be added as a separate line item to all shipments on or after July 14, 2008.
The surcharge will be based on the shipping distance between Sonoco’s converting plants and the customer’s location. The surcharge will apply to all customers who are not currently paying energy surcharges or who do not have contracted energy-related provisions.
“The unprecedented escalation in the cost of diesel fuel and natural gas has significantly increased our energy costs beyond what we are able to continue to absorb,” said Colyer. “We will continue to monitor our diesel fuel, natural gas prices and freight costs and make appropriate adjustments to reflect changes in our costs.”
Founded in 1899, Sonoco is a $4.0 billion global manufacturer of industrial and consumer products and provider of packaging services, with 334 operations in 35 countries, serving customers in some 85 nations. For more information on the Company, visit our Web site at http://www.sonoco.com/.