Sappi Europe, Brussels, Belgium, reports that despite extremely strong order books, mechanical coated paper profit margins continue to be depressed due to continuing cost creep. Sappi will address the cost inflation by increasing its LWC and MWC paper grades prices by 4%, effective with deliveries from April 1, 2018, for all markets as validities allow. To reach sustainable profitability levels, subsequent inflationary increases are expected during the year.

Sappi’s sales representatives will be in touch with their customers to agree on the specifics over the following weeks.