Swedish paper workers initiate industrial action

13/04/2010

Labour agreement talks broke down last weekend between the Swedish Paper
Workers' Union (Svenska Pappers) and the employers' Forest Industry Association
(Skogsindustrierna,SFIF). 

An overtime ban and a blockade of temporary workers started at all Swedish
papers mills yesterday evening at 6 p.m. If no agreement is reached in the
meantime, selective strikes will begin at six Swedish pulp and paper mills on
April 16. Metsä Tissue's mills are not among the six targeted mills. The
overtime ban and especially the pulp mill strikes in Sweden can nevertheless
have a disruptive impact on the deliveries, especially in Sweden. 

If the industrial action is prolonged or expanded, a pulp shortage could limit
the availability of certain tissue products, possibly even outside Sweden.
Naturally, the extent of the consequences will depend on the length of the
strike. The pulp and paper industry have already faced significant challenges
over the past month with pulp supply having suffered from the earthquake in
Chile and the Finnish stevedores' strike. 

Metsä Tissue has been monitoring the situation and preparing for the
eventuality of a strike for several weeks. Potential back-up capacity on top of
the stock arrangements within the company has been identified and will be
activated if needed. Metsä Tissue regrets any disruption caused by the strike
and will do its utmost to minimize any inconvenience to its customers and
consumers. 

Metsä Tissue will follow the situation carefully and keep key stakeholders
informed through ordinary business channels. 

For customer enquiries: Please consult your personal sales contact at Metsä
Tissue. 

For general strike-related questions:

Juhana Kalpio, SVP, Supply Chain
Tel: +358 1046 54184
E-mail: juhana.kalpio[at]metsatissue.com

Patrik Karlsson. Vice President, Supply Chain Scandinavia
Tel: +46 501 27 50 27 
E-mail:  patrik.karlsson[at]metsatissue.com