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Transport Workers Strike in Finland Causing Paper Mill Shutdowns

March 4, 2010 - A labor strike by the Finnish Transport Workers' Union (AKT) has Finland's paper manufacturers on the verge of shutting down their mill operations.

Stora Enso said that it expects to begin temporarily shutting down its Finnish mills in the near future and UPM that it has already been forced to close its Rauma paper mill.

Stora Enso estimated that the it could be impacted by as much as EUR 2.5 million per day, while UPM said the strike could eventually cost it over EUR 3 million per day.

"The impact of the strike will be wide and indefinite. The strike will severely tarnish the reputation of the Finnish forest products industry and its whole value chain," said Juha Vanhainen, Stora Enso Country Manager Finland.

The Finnish stevedores' strike started today (March 4) at 6 a.m. Finnish time.

UPM said all four of its Rauma mill's magazine paper machines are closed, affecting about 450 employees.

At other UPM paper mills in Finland, preparation for machine line shut downs is ongoing, the company said.

"In recent years our paper mills have worked hard to improve their competitiveness. This strike destroys the good results of that work", said Arto Lampinen, UPM's senior vice president for paper manufacturing..

SOURCE: Stora Enso and UPM




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