Strike Forces UPM to Halt Production on Paper Machine in Finland

April 13, 2011 - UPM said that it has been forced to close its envelope paper machine at the Tervasaari paper mill in Valkeakoski, Finland, due to the salaried employees' strike.

The strike, which began on April 6, was organized by the Salaried Employees' Union PRO in Finland.

Production on the envelope paper machine ends today, affecting about 40 employees, UPM said.

The two other paper machines at the Tervasaari mill will continue production, UPM added.

"We have been working hard to improve our cost competitiveness during the recent years. Unfortunately, this strike is now destroying the good results of that work," said Juha Kaariainen, general manager of the mill.

"The production disturbances also affect negatively our reputation as a reliable supplier in the eyes of our customers," Kaariainen added.

UPM said paper machines in the company's other paper mills in Finland are running for the time being, but the risks are increasing day by day.

UPM noted that it has made "large special arrangements to keep the production running," which are resulting in extra costs for the company.

The Tervasaari paper mill produces 370,000 tonnes per year of label paper (base), envelope and MG papers.