In response to the continued escalation of its key raw materials and other input costs, in particular polyethylene, nylon and benzene, Sealed Air Corporation announced it is in the process of implementing North American price increases ranging from 3% to 8% within the company’s Food Care and Product Care divisions. The increases are as follows for 2014:
• Eight percent increase on food packaging trays effective February 3
• Five percent increase on paper packaging systems effective March 1
• Five-to-eight percent increase on other protective packaging products effective March 1
• Three and a half percent increase on Food Care hygiene solutions effective March 3
• Four-to-six percent on Food Care bags and rollstock effective March 24
“As our raw materials costs continue to rise in 2014, we will remain steadfast to a pricing strategy to recover these costs. In 2014 alone, suppliers of polyethylene (PE), nylon, and benzene, large inputs to our products, have announced significant price increases on top of significant increases in 2013. Most recently in North America, PE suppliers announced price increases of $0.04 effective February 1, 2014, with further announced increases March 1, 2014. To date these increases range between 21% and 28% since January 1, 2013. Benzene prices have increased 25% over the past three months and nylon is increasing $0.10 or 6%,” Jerome A. Peribere, president and CEO, Sealed Air, said.