North American recycled paper provider, FutureMark Paper has signed ten long-term purchase agreements worth more than $20m annually, to secure about 50% of the recovered paper needed to run its business.
The agreements will help the company to manage its costs for buying waste paper, while reducing its exposure to wild swings in waste paper costs, which have fluctuated by more than 300% within two-year cycles.
Under the agreements, the company will buy the recovered paper needed to make the company's 90% to 100% recycled paper.
Each agreement, which lasts for two or three years, establishes a stable cost, regardless of how dramatically recovered paper markets rise or fall over the life of the agreement.
FutureMark Paper president and CEO Steve Silver said the agreements are going to be instrumental in ensuring the long-term health of US recycled paper companies.
"These agreements are an insurance policy against the extreme volatility of globalized waste paper markets -- for both us and our suppliers," Silver said.
