Stora Enso has lost around €150m as a result of the labour dispute in Finland.

At the time of the publication of its financial results for the first quarter of 2005, the company estimated that disruption to its production in Finland would reduce the group’s operating profits by about €3m a day.

It has now confirmed that its second quarter results are negatively impacted by around €150m.

The company said production has recommenced at all its production units in Finland. However, full production of saleable quality was not expected to be achieved until the second week of July.

The group’s third-quarter results will therefore be affected by the machine start-ups in the first week of the quarter.

However, Stora Enso said that the new labour agreement will help ensure the long-term competitiveness of the Finnish forest products industry.

The company said its second quarter results will also be affected by the decision to impair the fixed asset value of Veitsiluoto sawmill in Finland by around €12m.