GLATFELTER ANNOUNCES PRICE INCREASE
York, PA, November 19, 2010: – Glatfelter (NYSE:GLT) today announced that its Advanced Airlaid Materials Business Unit (AMBU) will begin implementing price increases on a global basis in response to a pronounced rise in raw material costs.
Pricing for AMBU’s primary raw materials, such as fluff pulp, have risen by as much as 40 percent since 2009. Despite earlier forecasts to the contrary, pricing will remain at high levels in the fourth quarter of this year and into 2011. Petroleum based raw materials such as bico fiber, PE powders, and super absorbent powders have also experienced dramatic price increases and are expected to continue to rise in 2011. The upward pressure on pricing is a consequence of broad increases in demand for these raw materials.
As a result, AMBU will enact an immediate price increase that will affect all customers to varying degrees depending on their product composition. Additional increases are expected based on current raw material market projections.
“We have witnessed historically high and rapid price increases of our input costs in 2010. Originally, we anticipated a decrease in the fourth quarter.This has not occurred, thus it has become necessary to pass on these increases to our customers”, said Dante C. Parrini, COO of Glatfelter. “This is not a Glatfelter-specific issue, as the raw material prices have been in an inflationary mode for the past four quarters and has affected the entire industry. These price increases are essential to support our investment initiatives and innovation platform for customers that will continue to ensure that Glatfelter remains the global supplier of choice.”
We are taking further steps to mitigate price increases through innovation and R&D and by reducing the basis weight of products while maintaining or improving performance. We believe this is in line with our sustainability mission and the company’s cost reduction targets.
Glatfelter (NYSE: GLT) is a leading global supplier of engineered materials. The Company’s high-quality, innovative and customizable solutions are found in tea and single-serve coffee filtration, personal hygiene and packaging products as well as home improvement and industrial applications. Headquartered in York, PA, the Company’s net sales approximate $950 million annually with customers in over 100 countries and approximately 2,300 employees worldwide. Operations include eleven manufacturing facilities located in the United States, Canada, Germany, France, the United Kingdom and the Philippines. Additional information about Glatfelter may be found at www.glatfelter.com.
Corporate Headquarters (York, PA)