API increases prices in Europe

In order to improve flagging financial results, global steel packaging manufacturer, Arcelor Packaging International, has said that it will increase its prices in France and Spain by 5 per cent for all deliveries as of 1 January 2003.

The company said that the Spanish increase, under the same conditions, was additional to the price increase announced in July 2002, and was aimed at harmonising its European pricing.

The improvement of its profitability is one of the major strategic axes of API in the steel for packaging market. In recent years the business has suffered from an increase in operating costs. API is pursuing its price increase policy, launched in 2001, by applying the 5 per cent rise in its French price list for 2003.

With regards to the Spanish price list for 2003, the company said that it would apply the same 5 per cent price increase, which comes in addition to the price list increase of 10 per cent for tinplate and 12 per cent for ECCS announced in July 2002. This means that the market there will experience an overall price increase of 15 per cent for tinplate and 17 per cent for ECCS, as from 1 January 2003.

This increase in the Spanish price list will be applied to the whole Iberian zone, as well as to all South Mediterranean countries.

Within the framework of performance optimisation, API aims to carry on the broad programme it launched in 2001 to develop its competitiveness, and this year started an ambitious plan of cost reduction in France, Belgium and Spain - countries where its production plants are located.

The company said that the steel for packaging market in Europe currently remains stable in terms of volumes, with growing segments, such as those of beverage and aerosols.

Currently API is the world's largest provider of steel for packaging, which largely includes the food and beverage industries.