Force majeure notice after Chile quake stops mill... and UPM stops in Finland

Mar 04, 2010 at 01:20 am by Staff


Norske Skog Bio Bio has issued a notice of force majeure (act of God) after production at its mill in Concepción, Chile, was stopped after the earthquake on February 27. There were no fatalities or injuries amongst employees at the mill, which emplys 240 and produces 130,000 tonnes mostly of newsprint. Chief executive Sven Ombudstvedt says property damages and business interruption are covered by insurance, but preliminary reports suggest it will take some time to restart production. As a result of the force majeure Norske Skog Bio Bio is until further notice not liable to perform any of its contractual obligations, the company says. Meanwhile, UPM says it has been forced to close its Rauma paper mill – which makes magazine paper – due to the Finnish stevedores' strike which started today on March 4. All of the mill's four magazine paper machines are closed, and about 450 employees affected.
Sections: Print business

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