Price Increase 1st April ….Explanation

An explanation for the soaring prices from a UK mill we use…..

23^rd March 2022

Dear Valued Customer

Since our recent announcements on pricing, we have continued to see a dramatic escalation in volatility and uncertainty with the tragic events in Ukraine creating an unprecedented set of circumstances.  This letter is to provide an update on our position regarding business in Russia and emergency steps James Cropper is required to take to mitigate the impact caused by these events.

Everyone at James Cropper is shocked and saddened by the events in Ukraine and the impact on its people.  We can confirm that James Cropper Plc has ceased purchasing any raw materials from Russia or Belarus and has immediately suspended trading with customers in these areas until further notice.

One key impact of the war is a further escalation of energy costs, in particular for natural gas. Market prices peaked at a record high and remain way beyond normal expectations. The price increases that we implemented in January & February will not compensate for these unforeseen additional costs and unless we take immediate action we face significant pressure on our ability to continue manufacturing.

With this in mind we must act now to protect our business in order to be able to continue to serve you, our customer, and safeguard our communities:

• For certain products and ranges that are no longer economically viable, we will either be exiting them or applying further price increases immediately. Our sales team will be in contact with those customers who are affected.
• We will apply an energy surcharge on all orders invoiced on or after Monday 28^th March 2022.  The surcharge will be set at £295 per tonne until further notice, however it will be reviewed week commencing 25^th April.

We appreciate the challenges this energy surcharge will present for your own business, but unfortunately we have no other option.  We will seek to remove/reduce this surcharge as soon as possible and will constantly monitor the situation.

Please contact your sales or customer service representative if you have any questions about an order and your sales representative will be available to discuss this matter with you should you wish.

Thank you for your continued support and partnership at this incredibly challenging time.

Yours faithfully,

Steve Adams

Managing Director

James Cropper Paper

Established 1845Price increases