PT Holdings Co. Inc., parent company of Port Townsend Paper Corp., informed customers of a $40/ton increase in containerboard for all orders produced after Jan. 10. This increase reflects the continued pressure on chip supplies in the Pacific Northwest, the company says. The shortage of chip supply has been driven by curtailment of sawmill production resulting from the recent declines in U.S. housing starts.
“This increase is necessary to offset the high fiber and energy costs the industry is facing,” President and CEO John Begley says. “Our fourth quarter performance has been negatively impacted by both the cost and availability of fiber. Additionally, the unusually severe winter weather has affected production at our primary mill in Port Townsend and our delivery abilities in Western Canada.”
So far, Georgia-Pacific, International Paper, and Weyerhaeuser also have announced increases for Jan. 1.
Sunday, December 10, 2006
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