Metsä Fibre has terminated the cooperation agreement with the contractor of the Kemi bioproduct mill project due to payroll disputes

Metsä Fibre press release 27 April 2023

Metsä Fibre's Kemi bioproduct mill project has identified irregularities in the operations of the contractor Hutni Montaze a.s. related to the payment of wages to the company's personnel during the project. Metsä Fibre has therefore terminated the cooperation agreement with Hutni Montaze.

According to Metsä Fibre's policy on combating the grey economy, all operators and partners must act in accordance with collective agreements and Finnish labour legislation. If irregularities are detected, operators are given the opportunity to correct their actions.

"The combat against the grey economy is an important issue for us, and the contract negotiations have already included a review of issues related to the combat against the grey economy and a commitment to comply with Finnish labour law. The suspicion is that Hutni Montaze's payroll calculation in Finland has been made in accordance with the collective agreements, but the actual payment of wages in the employee's home country has not been based on the payroll calculation presented to us. Despite several attempts, Hutni Montaze has not been able to prove its compliance with our contract and its terms. This is a breach of contract in relation to the rules of the fight against the grey economy and we have therefore terminated our cooperation agreement with the contractor in question," says Ismo Nousiainen, CEO of Metsä Fibre.

"Police is investigating the case together with other authorities. The occurrence of such violations is very disappointing for us, but this shows that fighting the grey economy works, which is important for us."

Metsä Fibre's bioproduct mill project has involved a total of around 15.000 employees and 1.900 companies. During the construction project, which has lasted around two years, a total of 10 companies have had to be removed from the site because they failed to meet the project requirements, even after being notificated.
 

For more information:

Jari-Pekka Johansson, Project Director, Kemi bioproduct mill project, Metsä Fibre, jari-pekka.johansson@metsagroup.com
Henri Saloranta, Communications Manager, Kemi bioproduct mill project, Metsä Fibre, +358 400 852 886, henri.saloranta@metsagroup.com

Metsä Group
www.metsagroup.com

Metsä Group is leading the way in advancing the bioeconomy. We invest in growth, bioproduct development and a fossil free future. The raw material for our products is renewable wood from sustainably managed northern forests. We focus on the growth sectors of the forest industry: wood supply and forest services, wood products, pulp, fresh fibre paperboards, as well as tissue and greaseproof papers.  

Metsä Group’s annual sales amount to approximately EUR 7 billion, and we have around 9,500 employees in 30 countries. Our international Group has its roots in the Finnish forests: our parent company is Metsäliitto Cooperative which is owned by more than 90,000 forest owners.  

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Metsä Fibre
metsagroup.com/fi/metsafibre

Metsä Fibre is a leading producer of bioproducts, biochemicals and bioenergy. We are the world’s largest producer of softwood market pulp and a globally significant manufacturer of sawn timber. There is a growing demand for our high-quality products, as renewable wood provides a responsible alternative to fossil-based materials. 

In 2022 our sales totalled approximately EUR 3.1 billion, and we have around 1,600 employees. Metsä Fibre is part of Metsä Group.