Price hikes, which will be in effect as of 1 June, will differ from country to country and per grade, and will vary depending on increases that have already been implemented.

The paper manufacturer said there has been a "continuous strong upward price increase" for pulp and other input costs during the last month.

Hans Karlander, sales and marketing director for Arctic Paper, said: "The global pulp market has also been seriously affected by the recent tragic events in Chile."

The Chilean market accounts for 8% of the global supply of pulp, and Karlander said it would take "several months" for supplies of wood and chemicals to the pulp mills in Chile to run as normal.

"The European paper producers see a high demand for woodfree papers but the entire paper producing sector is negatively affected by escalating variable costs."

He added that the company could not fully absorb the increase in costs.