Finnish paper makers flounder as wood shortage looms

0 Comments | AFP, July, 2008

HELSINKI (AFP) — Finland's already struggling paper makers are bracing for a new crunch as soaring Russian export duties on wood threaten to laden one of the Nordic country's most important sectors with a paralysing raw material shortage.

Finnish paper makers Stora Enso and UPM-Kymmene, which rank among the leaders worldwide, both reported disastrous second quarter results this week as due to continued shrinking demand and sky-rocketing costs linked in part to neighbouring Russia's ever climbing tax on wood exports.

With their quarterly reports bathed in red as a backdrop, the companies that have already laid off nearly 10,000 people in Finland since 2004 hinted another round of job-cuts and factory closures could be on the horizon.

"We are preparing a ......