Finnish forest sector struggles as strikes result in 40% trade dip

Posted on June 17, 2024   |  

Labor strikes in Finland's forest industry resulted in a 40% decrease in trade value, dropping to Euro 0.6 billion in April 2024 from Euro 1 billion in April 2023.

UPM, Stora Enso, and Metsa, among the world's largest forest companies, shutter pulp or paper mills in response to two-week strikes related to labor market regulations.

These strikes coincide with the Finnish government's implementation of austerity measures, despite the companies benefiting from the Red Sea Crisis.

Finnish forest imports experienced a 23% reduction, while wood chips saw a 19% increase in April 2024 compared to April 2023.

The first quarter of 2024 witnesses forest exports amounting to Euro 2.58 billion, with 23% attributed to paper, 27% to paperboard, and 22% to pulp.

Wood-based exports decline by 22% to Euro 0.60 billion, with the pulp and paper industry averaging Euro 0.66 billion per month, marking an 18% decrease from the previous year.

The export value of magazines and fine paper drops by 12% and 14%, respectively, despite an increase in export volumes. Additionally, paperboard exports decrease by 15% in value and 6% in volume.

Finland's primary timber sources are Latvia (41%), Estonia (30%), and Sweden (17%), with imports showing decreases in pulpwood and logs but an increase in chips.