Minister Pekkarinen sees paper cartel allegations as blow to Finnish reputation

Mauri Pekkarinen

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Finland’s Minister of Trade and Industry Mauri Pekkarinen (Centre) sees the suspected anti-trust violations by Finnish paper companies as a blow to Finland’s reputation.
      However, Jussi Pesonen, CEO of UPM, which revealed the activities to the authorities, says that the controversy has not had a negative effect on the company’s customer relations.
      After the scandal broke out, Pesonen sent a letter to his customers, hoping that their dealings could continue as before.
     
Briefing the government on the issue, Pekkarinen emphasised that UPM is so far the only company that has been shown to have broken the law, and that others are still under investigation.
      Pekkarinen said that the government ministers have had a generally positive view of the wood processing industry, which is one of Finland’s economic mainstays. He sees the cartel scandal as a serious blow to Finland’s reputation.
      Pekkarinen is from Central Finland, where UPM is a major buyer of wood. Now the Finnish Competition Authority suspects illegalities in the company’s acquisition of raw material.
      "As the son of a family of forest-owners, I can say that there have always been suspicions like this. I don’t know what the monetary implications are", Pekkarinen said on Thursday.
     
In his letter to UPM customers, CEO Jussi Pesonen says that he expects the scandal to take several years to get sorted out. "I hope that our business relationship will develop further, and that the process would not have a negative effect on our dealings with one another", he wrote.
      Pesonen told Helsingin Sanomat that he believes that the message has reached its target. He says that business has continued normally.
     
However, not all buyers are taking as calm a view as Pesonen suggests. Some have expressed shock at the events, and there is an increased interest in buying paper manufactured in Russia, which sells at a cheaper price.
      Hannu Olkinuora, CEO of Alpress, which publishes the key Tampere-based newspaper Aamulehti, says that it is too early to comment on the situation at this stage.


Previously in HS International Edition:
  Police raid offices of numerous forest companies over cartel suspicions

Helsingin Sanomat