The company said the increase was a result of pressure from rising input costs such as raw materials and transportation, which "have had a strong negative impact on profitability".

All of the company's UWF and CWF paper grades in folio sheets and reels will be affected by the increases, which will take effect on deliveries from 20 March 2011.

Arctic Paper manufactures bulky book paper and graphic fine paper and it is listed on the Warsaw Stock Exchange.

The total production capacity of the group's four paper mills is 810,000 metric tonnes of paper per year.

Arctic Paper was unavailable to comment at this time.