Bravo Mohawk Fine Papers

September 25, 2008

To our customers:

This year our industry has experienced challenges on a level not seen in recent times.  Rapidly rising costs combined with a soft economy have impacted both the demand and cost sides of our business and required many of us to make difficult decisions, including capacity reductions and price increases.

Slowing demand across the economy is finally beginning to have a moderating impact on raw materials and energy prices. We were therefore surprised to see some huge premium paper price increases coming into the market at this juncture. These increases come at a difficult time for you and your clients. They will be hard to absorb and difficult to pass on. We are concerned that they will lead to clients choosing not to print – or being forced to downgrade to lower quality paper.

We therefore want you to know that Mohawk Fine Papers will not be raising prices on our Text, Cover and Writing papers in the foreseeable future. Our position is based in part on the success of our ongoing cost reduction efforts coupled with moderating input costs. But in addition, we at Mohawk recognize that paper and print compete with other media for advertising resources. As a privately held company, we are uniquely positioned to balance the short term pressures we all share with our long term commitment to the health of our industry.

 

We thank you for your support and your business.

 

Sincerely,

 

 

 

 

Tom O’Connor, Jr.

Chief Executive Officer

Mohawk Fine Papers

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