Vanhanen makes no new promises on Kemijärvi pulp mill

Government not interfering with corporate decisions

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Prime Minister Matti Vanhanen (Centre) adhered to previous statements on the crisis sparked by the announcement by Stora Enso that it would close its pulp mill in Kemijärvi in Finnish Lapland.
      The impending closure was announced in late October, and now the process is rapidly becoming politicised. Nevertheless, the Prime Minister stood his ground at a brief press conference on Thursday.
     
The state does not plan to take issue with the decision to close down the plant, even though the state holds about one third of the company's voting shares.
      The government takes the view that such operative decisions in a company are made by the management and the board of directors.
      The government says that it is willing to work together with Stora Enso to deal with the aftermath of the situation caused by the elimination of the jobs in Kemijärvi. The company is expected to provide funds for this, and Vanhanen says that there is also money allocated in the national budget for areas undergoing structural change. However, decisions are to be made only when co-determination talks between labour and management on the loss of jobs are complete.
     
The state has no knowledge, and has no plans to support proposals to turn the building that contains the pulp mill into a facility that would produce biofuel.
      Vanhanen says that the only such project that is getting state support is being carried out in Varkaus together with Stora Enso.
      The government also has no intention to give Parliament a report on state policy in companies in which it holds shares. The opposition Social Democratic Party called on the government on Thursday to draft such a report, threatening a parliamentary interpellation otherwise.
      The SDP said that such a report was necessary, because of "the government's confused and contradictory statements".
      The Left Alliance also issued similar demands.
      Vanhanen noted that the SDP knows quite well what the state policy on corporate ownership is, considering that the party was heavily involved in the process for turning the policy into its present shape.
     
Vanhanen also denied that his government was being passive in the situation. He pointed out that measures were taken when UPM Kymmene announced the closure of its mill in Voikkaa, and as a result, 400 of the 600 employees who lost their jobs have now found new work.
      However, Vanhanen admitted that finding new jobs for the pulp mill workers in Kemijärvi is more difficult.
      He said that the opening of the proposed Sokli phosphate mine was the biggest opportunity for job creation in the east of Finnish Lapland.
      Vahnanen also said that developing the wood resources in the north was "in the general interest". However, he added that the forest industry faces difficult problems, which he sees as "a terribly serious question".
     
Also taking a stand on the issue of the closure of the Kemijärvi pulp mill on Thursday was the Union of Salaried Employees (TU), which demanded that the Stora Enso plants in Kemijärvi and Summa should continue operations.
      If no positive developments take place "in a few weeks", TU chairman Anti Rinne said that his organisation will be ready to take action.


Previously in HS International Edition:
  Forestry centres: wood shortage no reason to close down Kemijärvi mill (9.1.2007)
  Protesters in Kemijärvi occupy pulp mill slated for closure (4.1.2008)
  Ruukki Group offers to buy Kemijärvi pulp mill (21.12.2007)
  Minister says government is not to intervene in Stora Enso closures (6.11.2007)
  Finnish government allocates funds to areas hit by Stora Enso closures (26.10.2007)
  Wood shortage threatens pulp production in Kemijärvi (15.6.2007)

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