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Rautaruukki Oyj (HEL:RTRKS) Rautaruukki Corporation Stock exchange release 4 November 2008 at 14:00
Rautaruukki plans to discontinue the production of spiral-welded line pipes in Oulainen, Finland. Spiral-welded line pipes are used in natural gas transmission and mains water pipelines, for example, and are not part of Rautaruukki's core business. The large piles and structural pipelines used in construction will continue to be made at Oulainen.
The spiral-welded tube business has had net sales of around EUR 40 million a year. The market outlook for the products is poor, as is their profitability. A total of 110 persons are employed at the Oulainen works. The change is expected to affect around 70 persons in Oulainen and 4 persons in Hämeenlinna. Efforts will be made to find jobs for these people elsewhere in the company.
In addition, maintenance functions at the Virsbo works in Sweden are to be outsourced and production volume at the works is to be adjusted in line with profitable demand. Outsourcing maintenance functions will result in the transfer of around 20 persons to the company assuming responsibility for maintenance. The adjustment of production volumes is expected to affect around 45 persons during 2008-2009. The Virsbo works make small line pipes and structural tubes and currently employ 164 persons.
Negotiations with the personnel concerning the actions resulting from the above changes will begin within a week.
These actions are not expected to result in non-recurring costs.
For further information, please contact: Olavi Huhtala, President, Ruukki Metals, tel. +358 20 592 9157
Rautaruukki Corporation
Anne Pirilä SVP Corporate Communications and Investor Relations
Rautaruukki supplies metal-based components, systems and integrated systems to the construction and engineering industries. The company has a wide selection of metal products and services. Rautaruukki has operations in 26 countries and employs 15,000 people. Net sales in 2007 totalled EUR 3.9 billion. The company's share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS). The Corporation uses the marketing name Ruukki. www.ruukki.com
DISTRIBUTION: NASDAQ OMX Helsinki Main media www.ruukki.com
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
