Linpac hikes food packaging prices by 10%
UK-based Linpac will raise prices for all of its expanded polystyrene products (EPS) – often used to store hot food and takeaways – by 10% with immediate effect.
“Due to the increase in oil prices, further exacerbated by trade patterns and currency movements, styrene monomer prices have been increasing since October 2016,” said Linpac in a statement.
The toil of oil
The business said the increase in oil prices – with major benchmark prices of crude oil up 50 cents to $55.62 per barrel – had “very significantly” impacted the cost of polystyrene.
Polystyrene is the key raw material for Linpac’s EPS packaging products. As a result of the rise in oil price, Linpac said it had “no option” but to significantly increase prices by 10% with immediate effect.
Normally white in colour, rigid and tough, polystyrene it is a popular material in packaging and is used for everything from disposable plastic cutlery and dinnerware to building insulation.
The business supplies over 70 countries with food packaging and has more than 2,500 employees.
In the first half of 2016, Linpac announced a multi-million euro investment to develop sustainable packaging and firm up its position as one of Europe's leading food packaging manufacturers.
