Finland paper mill closed news has sent a large population in jittery for the possibility of mass unemployment.
Shut down decision cascading in nature
- The Finnish Forestry Giant UPM has reported its decisions to shut down its paper factory in Kaipola, the sole gigantic mill functioning in Finland. This decision for Finland paper mill closed would result a roughly 450 positions being swallowed by the shut-down.
- In an ongoing question and answer session, UPM attributed the decision of closure to a blend of reasons. This included taking off work costs, administrative boundaries, and tax assessment issues paper mill’s own deteriorating profitability in the business.
- Anu Ahola, UPM’s Newsprint Owner, also highlighted the importance of “staying competitive in a waning industry” UPM additionally sketch out proposed advances which could prompt an absolute decrease of 1000 positions before the ending of the year 2020.
- The paper mill at Kaipola is the only one extant manufacturing newsprint paper in Finland. Many of Finland’s major newspapers legitimately source their paper from the Kaipola factory, inferring that now they would need to switch providers once tasks end, as newsprint must be imported from abroad. As a consequence, this will also be resulting in increased paper purchase costs for the already toiling and strained newspaper industry.
- It’s not that the Finland paper mill closed ecosystem is muddling is confined to this country’s territorial boundaries only. The elongated unprofitability, increased cost of production and the economic disruptions caused by the Covid-19 pandemic have caused paper mills across the globe to face the vicissitudes of fortune and in fortune.
- The low demand for newsprint and magazine paper on account of transformation to the electronic and virtual media has also made the paper mills undergo the vagaries of technological developments which lead to gradual elimination of the print media culture amongst the readers.
- The prices of raw material and paper also suffer huge import duties at international level. This leads to increased cost of production on one hand and poor profitability on the other hand. Ultimately, the paper mills reached the point of condensation and the angle of depression.
- The aftermaths of such closure are further exacerbated by the fact that mass employment will take its leaps and bounds and will choke the employees’ life. The paper mills on the verge of closure may even face the wrath of the workers leading to peace negotiations by the mill’s management with workers’ representatives.
- The unfortunate part of the whole misery and indisposition is that the government is not considering any bail-out or relief package to resurrect the dying paper recycling industry. The policymakers have shown no encouraging signs of resilient or distensible hopes.
The paper mills closure is undoubtedly a tough call but the question arises was it an indispensable call. Quite apparently, nothing can be said precisely, but such a decision seems the outcome of deficient financial, operational and technological planning. As is said, if you fail to plan then you are planning to fail!