Talks between the Finnish paper unions and employers ended yesterday (25 May), with no sign of a conclusion on a new working agreement. The two parties are now set to re-convene on 30 May.

Employers extended a two-week lockout last month to four weeks until 15 June, following a series of strikes by the unions.

"The Finnish Paperworkers Union's messages have been very contradictory. This makes negotiations difficult and may force the paper industry to extend the lockout," said FFIF president Timo Poranen.

If the FFIF, representing the employers' interests, is forced to extend the lockouts, according to Finnish law it has to give two weeks' notice, by 31 May at the latest.

In terms of stock levels in the UK, one major manufacturer who supplies the magazine papers market said his stocks would be fine for the next two weeks.

But it was a case of "fingers crossed" beyond that.

However any stock shortages in the UK could spell good fortune for the UK converters.

M6 Papers managing director Andrew Towle said he had plenty of stock, and although in some case it would not be the same grades as publishers are currently using, he could supply very similar ones. "We are just waiting for the buyers to beat a path to our door."

Finnish news broadcasts have also been reporting that consumers have been panic buying both toilet and kitchen roll in the wake of the lockout action, amid fears of shortages on supermarket shelves.

The Finnish pulp and paper companies have between them about 40% of their total capacity in Finland.

Finland accounts for 27% of the UK's imports of paper and board, amounting to 1.1m tonnes of paper and board per year.

Story by Andy Scott