The company said that despite already having increased prices in 2008, "the amounts yet achieved are insufficient".

In a statement, it stressed the need for price increases in all main product areas.

Individual customer negotiations have already started in the various markets and all further increases will take effect as of early 2009.

However, Freddie Kienzler, managing director of Essex-based commercial printer Formara, said: "Clearly any price increase to printers at this time makes life even more difficult than it already is.
"However, just as we can't continue to operate year after year without passing on some of our cost increases, then logically we can't expect mills and merchants to do the same."

He said it is a fine balancing act between cutting overheads, increasing productivity and trying to keep a lid on all supply costs as best one can.

M-real warned about the need for the increase in its third-quarter results.

It recorded sales for July to September of €826m (£650m), down 0.4% from €870m the same time a year earlier.

Its total sales for January to September were €2.51bn, down 3.9% from the same period the previous year.