The Nordic countries are not immune to a struggling forestry sector, as UPM-Kymmene and Stora Enso make simultaneou…
The Nordic countries are not immune to a struggling forestry sector, as UPM-Kymmene and Stora Enso make simultaneous announcements of layoffs and mill closures.
UPM has confirmed plans to eliminate 1,600 jobs in 2009 and 2010, and to close up mills in Finland. Stora Enso is following suit with plans to slash its workforce by 1,700 positions, including 600 workers in Germany and 400 in Russia.
According to a report by Canadian Press, some analysts argue the magnitude of the cuts isn’t large enough. “This is just a sticking plaster, it’s not a big enough bandage,” CP reported Olli Joustimo from Glitnir Bank as saying. “They are such big movers globally in the field that we could expect similar announcements elsewhere too.”
CP further confirmed that Finnish Prime Minister Matti Vanhanen has called a cabinet meeting in order to discuss the cuts and the forestry sector in general. The industry accounts for 10% of Finland’s labour force and 20% of its exports.
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