Sunday, November 16, 2008

Newspapers face fresh printing pressures

Newspapers, which are already bracing themselves for falling advertising sales as the global economy turns down, face more bad news next year as newsprint producers try to push through steep price increases.

European newsprint producers led by Norske Skog, the world’s second-largest, are currently negotiating with customers to increase prices by up to 20 per cent.

They believe that recent capacity cuts have given them the market power to compensate for years of rising costs, flat prices and falling margins.

“We’ve been under quite a drastic margin squeeze for several years,” said Norske Skog’s spokesman. “We see a momentum now for increased prices.”

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