Cost Cutting Measures and New Product Development Yield Stable Pricing for Geami Paper Packaging Materials

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With price hikes for plastic packaging materials looming, Geami announces that ongoing initiatives to stave off pricing pressure for the company's line of paper packaging products have been successful.

packaging materials

Geami’s 100 percent recyclable packaging materials serve as a cost-effective replacement for oil-based materials such as foam, bubble packaging and air pillows.

We are pleased that our ongoing cost containment initiatives have been very successful. In today's competitive business climate, this is potentially a significant advantage for those companies that ship small parcels using protective packaging.

Geami, a leading manufacturer of paper packaging materials announced that the company's ongoing cost cutting measures and new product development have been instrumental in lessening the impact of price increase pressures that are prevalent in the current packaging material market. These measures include aggressive strategic purchasing initiatives, development of alternative paper products and freight optimization programs.

The plastics industry, including the packaging material sector, has been feeling the impact of substantially higher raw material prices this year. Estimates from within the industry suggest that since January 2010, the cost of polyethylene resin used to make products such as bubble packaging has increased 28% through February, and 87% since January 2009. Raw material price increase announcements for March and April raise these cumulative increases to 57% since January 2010 and 118% since January 2009. Because of this, some industry experts expect significant price increases in the range of 6%-8% for end users of plastic packaging materials by May of this year.

"We are pleased that our ongoing cost containment initiatives have been very successful," said Marcelo Pasos, Vice President of Sales & Business Development for Geami (http://www.geami.com). "Geami is now able to offer businesses looking for an alternative to plastic materials with paper packaging products and programs that present opportunities to offset much of the pressure of anticipated price increases that are already in the pipeline. In today's competitive business climate, this is potentially a significant advantage for those companies that ship small parcels using protective packaging," concluded Pasos.

About Geami

Geami® uses patented technology to create paper packaging materials that are used to protect a wide range of products from damage during shipping and handling. Founded in 1994 and based in Raleigh-Durham, North Carolina, Geami is a privately held company serving businesses of all sizes including Fortune 500 companies, Top 100 catalogers and light-volume shippers worldwide. Geami’s 100 percent recyclable paper packaging materials serve as a cost-effective replacement for oil-based packaging supplies such as foam, bubble packaging and air pillows. Nearly 20,000 packages are shipped daily with their contents protected by Geami. For more information, visit http://www.geami.com/greenwrap.html or call toll free @ 877-888-2030.

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Lynn Moe
Geämi, Ltd.
919-654-7700 7770
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