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Strike shuts down all production at Billerud’s Gruvön paper mill

The Swedish Paper Workers Union has during the weekend turned down mediators’ offer and is consequently deciding to go through with its expanded notice, which for Billerud eans total work stoppage at Billerud’s Gruvön paper mill that will come into effect as of today 18.00 CET.

The loss of production from Gruvön’s paper mill is expected to affect Billerud’s earnings by approximately SEK 4 million per day exclusive of compensation from the Confederation of Swedish Enterprise’s strike fund (Sw. konfliktfond).

Billerud’s paper mill in Skärblacka has been at a standstill since 16 April due to the Swedish Paper Workers Union’s strike. The total cost to Billerud of these two mills with production stoppages amounts to approximately SEK 7 million per day exclusive of compensation from the Confederation of Swedish Enterprise’s strike fund.

The Confederation of Swedish Enterprise has pledged that full compensation from strike funds will be paid to members affected by this industrial action.

“This conflict feels totally unnecessary and is a tragedy for everyone who works in the Swedish paper industry. We apologize to our customers for the damages we are causing them and hope that those responsible for these damages will come to their senses as soon as possible so that we can start deliveries again,” says Billerud’s President and CEO, Per Lindberg.

The information is such that Billerud is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 08.50 a.m. on 26 April 2010.

SOURCE: Billerud

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