Film maker moves date for price hike

By Frank Esposito
Senior Staff Reporter

Published: June 6, 2014 2:58 pm ET
Updated: June 6, 2014 3:01 pm ET

Related to this story

Topics Packaging, Film & Sheet

Film manufacturer AEP Industries Inc. has pushed the effective date of its non-resin price increase back to June 9, in an attempt to build support for the move. South Hackensack, N.J.-based AEP in mid-May had announced 4 percent price increases on film and bag products made by all nine of its divisions. Sigma Plastics Group of Lyndhurst, N.J., and Evansville, Ind.-based Berry Plastics Corp. each announced similar moves on polyethylene-based stretch film, with Sigma taking the same action on its custom film products.

AEP, Sigma and Berry each rank among North America’s 10 largest film and sheet extruders, according to Plastics News’ ranking. Sarasota, Fla.-based Intertape Polymer Group — ranked 23rd on that list — also announced a similar price increase.

AEP executive John Powers said in a June 5 phone interview that although most major stretch film makers are supporting the increase, makers of can liners and other types of film products have not done the same. This lack of support led AEP to push the effective date back from its original date of June 2.

“Customers are saying they want orders at the old price, or they’re holding off on placing orders,” said Powers, AEP’s executive vice president of sales and marketing. “A non-resin price

increase is an unusual thing and I think that [film makers] are fearful of losing market share.”

Sigma has not delayed its increase attempt, but the firm “will meet competitive situations,” President and Chief Operating Officer Mark Teo said by phone June 6.

“It’s been challenging,” Teo said of his firm’s attempt to raise prices. “Certain segments of the industry haven’t supported it.”

“I think people [who aren’t supporting the increase] might be afraid of losing business,” he added. “But we’ve spent the last month explaining the rationale for the increase, and everyone we’ve talked to has said they’re seeing the same conditions.”

Officials with firms trying to raise film prices had said the increases are needed because of recent increases in costs for a wide range of items, including fuel, shipping, freight and health care. But many of them have contracts with their customers that allow for price increases only when the price of resin increases.


Comments

Film maker moves date for price hike

By Frank Esposito
Senior Staff Reporter

Published: June 6, 2014 2:58 pm ET
Updated: June 6, 2014 3:01 pm ET

Post Your Comments


Back to story


More stories

Image

Major packaging merger includes plastics operations

January 26, 2015 12:24 pm ET

A merger of packaging companies MeadWestvaco Corp. and Rock-Tenn Inc. will create a new company with nearly $16 billion in annual sales.    More

Image

MonoSol optimistic it can reach new markets with water soluble films

January 26, 2015 4:46 pm ET

MonoSol LLC — riding a wave of growth spurred on by the rapid adoption of water soluble detergent packets in recent years — is looking to ...    More

Image

Oxo-biodegradable lobby slams 'scaremongering'

January 26, 2015 12:16 pm ET

Single-use plastic carrier bags made from biodegradable material should be exempted from the government’s proposed 5p-a-bag levy in England,...    More

Image

Berry's rebranded Blue Clover expands packaging design reach

January 23, 2015 1:59 pm ET

As design director of Berry Plastics Corp.'s rebranded packaging design studio, Scott Fisher believes the new name of Blue Clover Studios cuts the...    More

Image

W&H buys bigger stake in BSW

January 23, 2015 10:43 am ET

Windmoeller & Hoelscher KG will get more involved in flexible packaging machinery through its bigger stake in machinery maker BSW Machinery Handels-Gm...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events