Pick-up begins as strike is called off

UK printers and publishers have expressed huge relief that the Finnish paper dispute has now ended, but suppliers will still have to wait until the second week of August for stock to be replenished.

The two sides eventually agreed a new deal on 29 June, following an intervention by Finnish Prime Minister Matti Vanhanen.
UPM said its mills started up on 1 July and should be back to full capacity by tomorrow (8 July).

A source at Stora Enso said deliveries into the UK should come through by the end of July or second week in August at the latest.
"We are just glad it has now come to an end," said the source.
Precision Publishing Papers director John Rukin stocks were of sufficient levels to maintain supply.

"Had it gone on for a few more weeks it would have made a dire situation worse." Some UK publishers cut pagination, dropped sections and supplements.

IPC manufacturing director Jasper Scott said his firm managed by purchasing significant volumes of stock as soon the strike took hold.
The dispute is estimated to have resulted in production losses totalling 1.2bn (e1.8bn) across the forest industry companies.
The cost impact of the new three-year agreement will be a 2.5% hourly wage increase this year, with an increase of 1.9% in 2006.
A new working time model for three-shift working will also be introduced.

Mills will now be operational during the midsummer and Christmas periods, and local agreements will be negotiated over the outsourcing of maintenance and services.

Finnish manufacturer M-real has issued a profits warning, and said the production disturbances will weaken its second-quarter result by 47m, of which just over 13.5m is attributable to the decrease in product inventories.

Finnish transport and logistics (SKAL) managing director Seppo Sainio has estimated the road goods transportation business has lost 54m, with Finnish rail service provider VR citing a cut in sales resulting in an 11.5m loss.

Story by Andy Scott