Naperville, IL (May 11, 2011) —Portola Packaging, Inc. is announcing a closure price increase, effective June 1, 2011, due to non-resin cost inflation. The increase, subject to certain terms and conditions, affects most of the company’s closure products commonly used for beverage, dairy and water applications.
The price increase applies to North American customers and has been prompted by 10 to 20% increases in non-resin costs such as energy, packaging and additives over the past three years since the last non-resin price increase was implemented.
“Portola Packaging has worked diligently to improve its productivity and drive as much cost as possible out of its manufacturing operations. We have been able to accomplish this while still maintaining a high level of product quality. Although we have managed to absorb non-resin cost inflation over the past three years, continuously increasing expense pressures have made it necessary to pass along a portion of these costs to our customers,” said Kevin Kwilinski, president and CEO, Portola.
The price increase percentage will vary by specific closure size and type.
“Over the last three years we have invested millions of dollars in leading edge, low-cost technologies that have allowed us to offset inflation with double-digit improvements in efficiencies. We are committed to working hard to continue to control all aspects of our manufacturing so that the impact of these rising costs to our customers can be minimized,” Kwilinski said.
About Portola Packaging
Portola Packaging, Inc. is a leading manufacturer of stock and custom tamper-evident plastic closures and containers for dairy, juice and other food segments. The company is known for its superior product integrity, technical capability, global manufacturing footprint and speed-to-market. For more info: www.portpack.com.