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Strike in our Swedish mills

26/04/2010

 
During yesterday talks, the Swedish paper workers' union, Pappers, has once again negatively reacted to the efforts of the mediators to find a viable solution for the renewal of the collective contract.

This radical position is clearly setting the high risk for the continuation of the enforced strike in the six mills, including our SCA Containerboard mill in Munksund and as it looks right now, will be extended to an additional six mills, including our SCA Containerboard mill in Obbola, as of tonight, April 26th, at 18:00h.

At the moment we are not in the position to foresee the length of the strike as it is entirely depending on the outcome of the collective contract negotiations. The additional risk now is the further extension of the strike to ban transport out of Sweden.

This disagreeable situation, risking to escalate the already tight supply situation to an unsustainable level, is completely beyond our will and we strongly re-ensure that we have been putting in place all possible actions to limit the impact on our Customers. One of the most important decisions taken is the postponement of the already planned maintenance shut in Munksund, this will free some additional capacity to keep serving our Customers during this delicate period.

We are keeping a close contact with our Customers, to make sure we offer clear and updated information, in order to minimise any risk for their production. Unfortunately, depending on the length of the time of the action we cannot rule out a shortage of some grades. We still sincerely hope that an agreement will be reached soon and we apologise for any possible supply delay that might occur as a consequence of this action. 

We will keep you informed in any possible way about the development, including through our website channel.

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