Jun 07, 2005. /Lesprom Network/. South African paper producer Sappi said on Monday it expected to benefit from a shutdown of Finland's pulp and paper mills as a result of a strike, but declined to give financial details. One of Finland's strongest labour unions on Sunday rejected proposals for a new labour deal, continuing a three-week shutdown of the Nordic country's pulp and paper mills. "We would expect it (strike) to help us regain some of the market share we lost," said Robert Hope, Sappi executive in charge of strategic development. The world's largest maker of fine paper used in glossy magazines announced price increases in Europe of up to Euro 50 per tonne effective April which saw it lose some market share. "So we would expect the Finnish strike to help us regain some of that market share, but we don't really know what the Finish manufacturing situation is," said Hope. He would not be drawn to give details on possible impact on earnings. The Johannesburg-based company reiterated last month that 2005 earnings were unlikely to match last year's. Sappi also said that meeting the consensus earnings forecast of $0,05 per share for the third quarter could be a challenge. "We have not said anything further. I am not reaffirming that. The last earning guidance we gave was last month," said Hope. Sappi's financial year runs from October 1 to September 30. It posted headline earnings per share of $0.45 in 2004 down from $0.69 previously. Analysts also expect Sappi to benefit from the Finish strike. "...we believe a prolonged lockout could significantly tighten lacklustre European paper markets and apply modest upward pressure on prices, which could benefit non-Finnish based Sappi," JP Morgan in a research note.