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Anger at M-real’s decision to close large UK paper plant

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19 October, 2006

The ICEM joined its UK affiliate Amicus today in denouncing yesterday’s alarming announcement by Finnish paper multinational M-real. On Wednesday, workers in the UK were informed, unexpectedly, that the M-real’s paper and packaging plant in Sittingbourne, Kent, is about to be closed.

The company’s surprise announcement, part of a wider extensive restructuring programme by M-Real, came out of the blue and without any prior consultation or notice. M-real’s poor communication techniques therefore not only shocked its own workforce, it also violated a legal requirement that says that the company needs to consult with its own European Works Council first in advance of any decisions such as this one.

The closure of the plant, which is owned by Metsäliitto, a Finnish forest industry group - of which M-Real is a subsidiary - would lead to the loss of 350 jobs. The company has also announced plans to close a plant in Wifsta, Sweden, as well as two paper machines in its Gohrsmühle plant in Germany, endangering a further 150 jobs. In addition, a cartons unit with sites in Belgium, Hungary and Finland may be divested.

Peter Ellis, Amicus national Officer, said that the union “will not take Metsaliitto's proposal to close this site lying down. We owe it to our members and their families, who are angry, bitter and devastated, to do everything in our power to help”. He continued to say that he was “extremely disappointed” with M-Real's proposal to close this site, which is very important to the local economy.

In challenging the company’s sudden decision, Amicus said it would certainly want to co-operate with paper unions in the other countries involved, including Finnish Paperiliitto, which also recently faced an M-Real closure when the company, on 11 October, closed a carton plant in Jarvenpaa.

ICEM General Secretary Fred Higgs vowed that “the ICEM will give every assistance to its affiliates in challenging the decisions by the company, and will liaise with other affiliates with membership in this company in countries world-wide.”

The Amicus press release on the issue, including further contact details, can be found here.