Sonoco Announces Surcharge for Wood Reels

Sonoco SON will implement a surcharge of 8.6 percent for its nailed wood reels, effective July 1, 2012. The surcharge is necessary to offset the steady increase in lumber costs experienced over the past two years. "We have chosen to use a surcharge rather than changing our base price because we feel lumber costs should soften later this year," said Greg Powell, general manager, Sonoco Reels. "Our plan will be to adjust the surcharge to reflect any future decline in lumber pricing. At the same time, should the cost for lumber continue to increase, our surcharge would be adjusted accordingly."