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Billerud to Stop Production at 2nd Mill Due to Swedish Labor Union Strike

April 26, 2010 - Billerud said that the ongoing Swedish Paper Workers Union during the weekend has turned down an offer by mediators and is consequently deciding to go through with its expanded notice, which for Billerud means total work stoppage at the company's Gruvon paper mill, effect today.

The loss of production from Gruvonís paper mill is expected to affect Billerudís earnings by approximately SEK 4 million per day, exclusive of compensation from the Confederation of Swedish Enterpriseís (CSE) strike fund, the company said.

Billerudís paper mill in Skarblacka has been at a standstill since April 16 due to the strike.

Billerud said the total cost due to loss of production at these two mills totals about SEK 7 million per day, exclusive of compensation from the CSE's strike fund.

The CSE has pledged that full compensation from strike funds will be paid to members affected by this industrial action, Billerud said.

ďThis conflict feels totally unnecessary and is a tragedy for everyone who works in the Swedish paper industry," said Billerud's president and CEO, Per Lindberg.

"We apologize to our customers for the damages we are causing them and hope that those responsible for these damages will come to their senses as soon as possible so that we can start deliveries again," Lindberg added.

SOURCE: Billerud




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