UPM temporarily shuts its Kaukas and Kaipola mills in Finland due to stevedore strike

BRUSSELS, March 8, 2010 (RISI) - UPM has temporarily stopped production at its Kaukas and Kaipola mills in Finland this weekend due to the stevedore strike that started the morning on March 4.

Negotiations regarding the collective agreement for some 3,000 stevedores will restart on Tuesday at 1 PM.

The Kaukas plant in Lappeenranta has a capacity of 570,000 tonnes/yr of coated mechanical paper on two machines. The Kaipola factory can churn out some 700,000 tonnes/yr of directory paper, newsprint and lightweight coated (LWC) paper on three machines.

The firm already shut its mill in Rauma on March 4. It can produce 720,000 tonnes/yr of LWC and 540,000 tonnes/yr of supercalendered paper on four machines.

All other UPM plants in Finland are at least partially running.

If the stevedore strike does not stop, the firm plans to shut one machine at its Kymi factory in Kuusankoski on Wednesday and one at its Tervasaari mill in Valkeakoski on Thursday.

The Kymi plant has a capacity of 450,000 tonnes/yr of coated woodfree paper and 400,000 tonnes/yr of uncoated woodfree paper. The Tervasaari mill can manufacture 265,000 tonnes/yr of release liner and 100,000 tonnes/yr of envelope paper and kraft papers.

Sappi has also shut down its 740,000 tonne/yr Kirkniemi facility, which produces coated mechanical paper, as a result of the strike.

According to reports in Finnish media, Stora Enso will start shutting down machines on March 10 if the strike continues.