An increase of between 5-10%, blamed on rising raw material and energy costs, will affect the prices for reels and sheets.

The independent German company said in a statement that, despite cost cutting and efficiency improvement programmes, the profit margin in a number of its segments was extremely low and in some cases even negative.

It said: “This situation does not allow us to digest additional cost increases. As there is no expectation of a trend reversal, further prices increases are inevitable.”

The Koehler Group has a turnover of €640m (£506m) and sales of 483,000 tonnes of paper. Its head office is in Oberkirch and it has mills in Kehl, Ettlingen and Greiz.