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

Flexible film waste-to-oil pilot project continuing in California

August 19, 2014 3:19 pm ET

A recent decision to discontinue operations at a plastics waste-to-oil site in Portland, Ore., is not impacting a pilot program aimed at hard-to-...    More

Image

Prolamina adds pouching machine

August 19, 2014 10:53 am ET

Flexible packaging company Prolamina Corp. has a new pouching machine in its manufacturing arsenal.    More

Image

Cardia Bioplastics opening bag manufacturing plant in Brazil

August 19, 2014 9:31 am ET

Australia's Cardia Bioplastics Ltd. says the high demand for environmentally friendly bags has prompted it to set up a film and bag plant in São...    More

Image

Mauser opening joint venture in Mexico

August 18, 2014 1:27 pm ET

Mauser USA is teaming with Servicios Ambeintales Internacionales to open a new intermediate bulk container joint venture in Mexico that will include...    More

Image

Sustainability report shows impact of lightweighting at Dr Pepper

August 15, 2014 12:50 pm ET

There's no period in Dr Pepper and now there's less and less resin in the PET bottles that the beverage maker produces.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

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

More Events