Outcome reached in the collective labour agreement negotiations at UPM Raflatac

The transport of timber and wood chips between Larvik and Norske Skog Saugbrugs in Halden has long taken place using trucks. Norske Skog is now using trains on the stretch, which will significantly reduce CO2 emissions from the transport. The train line will transport timber and wood chips from Bergene Holm in Amundrød near Larvik to Norske Skog Saugbrugs in Halden. The transport to the east will consist of an approximate 50/50 split between wood chips from the sawmill at Amundrød and pulpwood from surrounding forests. In return, Bergene Holm will transport sawn timber from the Halden area to the sawmill at Amundrød. Thanks to Norske Skog Saugbrug's strategy of moving transport from road to rail, by the end of 2021 the company will annually have a total of 7 500 fewer lorries on Norwegian roads compared with 2015. Following the introduction of all transport measures, Norske Skog Saugbrugs will have reduced CO2 overall emissions for inbound timber and wood chip logistics by just over 25 per cent.

UPM and the Paperworkers’ Union have not been able to come to new collective labour agreements. Today, the union turned down four settlement proposals submitted by the conciliator. The exceptionally long strike at UPM Pulp, UPM Communication Papers, UPM Specialty Papers, UPM Raflatac and UPM Biofuels units in Finland continues. “We are deeply disappointed in the decision of the union and in the continuation of the strike that has already lasted 3,5 months. UPM has been negotiating with an earnest mind and made several compromises. We also accepted the conciliation proposals. Modernising the agreement stemming from 1940’s would be important both for the employees and the company,” says Jyrki Hollmén, Vice President, Labour Markets at UPM. “It is very disappointing that after intensive negotiations, no business was able to reach a conclusion. Petri Vanhala, chairman of the Paperworkers’ Union, confirmed in the mediation of all businesses that each business can be agreed separately. The mediation found settlement proposals for four businesses that took the needs and wishes of both parties into account. We were confident that both parties undertook to accept these settlement proposals and industrial peace would resume. Now that the union has turned down the once drafted proposals, our businesses will make a fresh start," Hollmén continues.

Koehler Group publishes figures for 2020 financial year: Despite the worldwide impact of the Covid-19 pandemic and the fall of total sales for German paper industry, the Koehler Group managed to perform relatively well in its market and maintained its competitive edge and invested more than 91 Million Euros during 2020. In the 2020 financial year, Koehler Group’s revenue fell by 11.7% to 769 million euros. The operating result of 66 million euros is significantly lower than the previous year’s figure and therefore significantly below target. Koehler Paper saw its sales volume fall by 1.5%, with the decrease essentially due to the decline caused by the Covid-19 pandemic. Koehler Group’s equity grew by 29 million to 590 million euros during the previous financial year. The equity ratio therefore equals 57.2%, with a decrease in the balance sheet total, and has clearly exceeded the long-term objective of more than 40%.