Press release

Felix Schoeller increases prices due to steep rises in the cost of pulp

The Felix Schoeller Group, the Osnabrück-based manufacturer of specialty papers, which has imaging and decor paper operations, is increasing its prices from 01.04.2010 in line with the depth of value added to products. The price increases will range from 3 to 15 per cent depending on the grade. The company is also introducing a "pulp supplement." This is linked to the additional short-term changes in prices for eucalyptus pulp. The pulp supplement will mean a proportional increase in the company's prices for decor and imaging papers whenever the listed prices for pulp on the global markets rise. When pulp prices fall, the prices of Felix Schoeller's specialty papers will drop accordingly.

With these price rises and the introduction of a pulp supplement, Felix Schoeller is responding to the extreme hikes in the cost of these key raw materials. Expectations are that, having risen by about 75 per cent since June 2009 to the present level of 790 US dollars/tonne, raw materials prices will see further drastic increases in the months to come: Monthly rates of increase of 50 to 75 US dollars/tonne cannot be ruled out at present.

Global listings for pulp are based on the US dollar. They are influenced not only by the rise in the value of the dollar but also by a reduction in supply. This is due to the fact that the major pulp producers in Chile, Arauco and CMPC, are suffering production constraints as a result of the devastating earthquake.
Dr. Bernhard Klofat, CEO of the Felix Schoeller Group, reaffirmed: "The Felix Schoeller Group is forced to pass onto the customer the price rises for eucalyptus pulp, which is our principal raw material. By introducing a supplement/deduction scheme for pulp, we are responding to the current price fluctuations in a way that is in line with the markets. If pulp prices drop again, we will adjust the pulp supplement accordingly."