Opal explains reasons for paper surcharge
Major office paper supplier announces price hike from 1 June.
Opal’s paper division has announced that it will implement a nine per cent surcharge on orders for copy and printing paper, envelopes and stationery.
In a statement to Office Products News, the company said: “Like many Australian businesses, over the past two years, Opal has been experiencing persistent cost escalation for key manufacturing inputs such as gas, electricity, fibre, chemicals and other raw materials.
“Global impacts of supply shortages and cost increases linked to the COVID-19 pandemic and more recently, the Ukraine/Russia situation plus significant ongoing freight and fuel levy increases, year-on-year, have also compounded the situation.
“As a result, Opal Paper will implement the surcharge of nine per cent from 1 June, which will be reviewed on a quarterly basis and adjusted in line with significant future cost changes.
“Opal will continue to keep its customers informed and updated on any planned adjustments,” the company said.
Opal Paper sales representatives have communicated with their customers about the surcharge and said it appreciates that some customers may have additional questions.
“Customers are encouraged to contact their Opal Paper sales representative to discuss the surcharge changes in greater detail,” the company said.
Levy added to earlier price increase
OPN has received a copy of a letter to customers dated 20 April 2022 and jointly signed by Masanobu (Matt) Iizuka, CEO of Opal and Craig Nicol, executive general manger – paper division, in which the company said: ”Although we announced a market-wide price increase late last year for 2022, this has not been sufficient to cover the increased costs we are experiencing. Despite our best efforts it is commercially unsustainable to continue to absorb the increased costs.”
Date Published:
9 May 2022