Impress increases prices of cans

Following several months of exceptionally high prices for aluminium on the international commodity market, Impress has reluctantly decided that it has no alternative but to pass through the sharply increased cost in its prices to customers.

Aluminium metal prices increased steeply in 2006 and after peaking in May, have settled at a level 34% higher than in 2005, boosted by strong demand from emerging markets, especially India and China.

At the same time oil and energy prices have hit record levels. Energy is the main cost component in both aluminium and steel production, and oil directly impacts input costs for inks, compounds and lacquers used in canmaking, as well as transport.

Impress will therefore increase its prices on aluminium cans for food and seafood by at least 12% from 1 st January 2007. Steel can prices will also be increased at the same time, by a smaller amount.

Francis Labbé, Chief Executive, explained the background to these unrelenting cost pressures: "We have waited several months now, hoping that aluminium metal prices would fall back to their previous level, but this has not happened. The world economy continues to expand, and emerging markets continue to increase their demand for commodities. And new metal capacity is not keeping up with the additional demand, creating an inevitable upward pressure on prices.

"We will continue to work with our customers to reduce metal content, to reduce costs throughout the supply chain, and to streamline our products. However, metal accounts for a significant proportion of our input costs, and no canmaker can absorb such an increase on his largest cost item. We have no option but to pass on these higher input costs through increased selling prices.

"Despite this increase, we believe cans, with their many advantages in terms of durability, barrier, presentation, and efficient filling systems, are still exceptionally good value compared to other types of packaging, many of which have also been impacted by even larger input cost increases in recent months".

Impress Group
Impress is a global market leader in the consumer metal packaging industry. It is the second largest European supplier of food cans, worldwide leader in the seafood can market, European leader in cans for paints and coatings, European leader in cans for dry foods and the second largest European producer of aerosol cans. Impress is based in Deventer, the Netherlands and has pro forma worldwide sales of approximately €1.6 billion. It employs approximately 7,700 people in 50 facilities in 17 countries in Europe, North America, Japan and the Seychelles.

For further Information, please contact:

Marie de Fouchier : Talents et Compagnie
t: +33 1 56 89 56 52
f: +33 1 56 89 56 50
e: fouchier@talentscompagnie.com

Impress : Richard Moore
t: +33 1 45 19 18 14

Discover Impress on: www.impressgroup.com