Labour dispute reduced production – agreement supports the development of competitiveness

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Owing to a labour dispute in the paper industry, in January-June forest industry production in Finland was about 20% lower than the year before. Paper and paperboard production fell by 23% to 5.2 million tons. Sawn wood production fell by 14% to 6 million cubic metres.

"Despite the short-term effects on production, the collective agreement that was concluded at the beginning of July supports the development of the Finnish paper industry’s competitiveness. The agreement allows mills to operate year round, thus closing the gap with competitors in other countries. Maintenance activities can be arranged according to production and market needs. In addition, the agreement allows mills to make their operations more effective at the local level," says Mr Timo Poranen, the President of the Finnish Forest Industries Federation. "Strengthening of competitiveness depends on how the new operating procedures in the collective agreement are implemented in practice."

In 2004 Finland produced about 14 million tons of paper and paperboard, 8 million tons of pulp, 13.5 million cubic metres of sawn and planed wood and 1.4 million cubic metres of plywood.

Finnish forest industry companies have 40% of their production capacity in Finland and 60% in other countries.

For more information, please contact:

Timo Poranen, President, Finnish Forest Industries Federation,
tel. +358 9 132 6600

Forest Indusrty Production in Finland January – June in 2005.pdf