January 28, 2022
Dear Valued Customer,
Since our most recent letter, dated January 14, we continue to closely follow the status of the strike at UPM in Finland. Although we had hoped the strike would resolve, on January 20 the Finnish Paperworkers’ Union announced that the strike would be extended until Feb 19. Production at UPM's pulp, paper and biofuels plants in Finland have been shut down for almost four weeks so far and this strike could continue for the foreseeable future.
The prolongation of the strike is also disrupting the supply of UPM’s paper grades such as glassine, vellum and coated paper, as well as specialty papers. Other paper manufacturers that rely on UPM products may be impacted due to pulp and paper shortages. We hope the strike resolves very soon as we are concerned that if the situation continues, these shortages might extend throughout the 2nd quarter of 2022.
Adding to this situation are other ongoing supply constraints and continued significant inflationary environment, which may force us to take stricter measures, including:
- Reviewing and rescheduling already confirmed and new orders based on raw material availability
- Placing new business on hold or deferring it
- Repricing all existing and future orders
Also, we are unable to move confirmed orders to an earlier delivery date until further notice.
We will also inform you, more precisely, in the coming days, about the impact of recent additional inflation on the prices of our products.
Please know we are working diligently to mitigate the effects of this strike situation, which is unforeseen and beyond our control, by leveraging our extensive supplier base, great relations with all suppliers and global presence. We will continue to keep you updated on the developments in a very transparent and timely manner.
If you have questions or need assistance, please reach out to your Avery Dennison representative.
Thank you for your patience and understanding. We greatly appreciate your business and value our partnership.
Sincerely,
Burak Sahbaz Vice President Sales Label and Packaging Materials EMENA |
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