Ruukki Engineering plans to discontinue manufacturing of welded components in Sweden - Central Eastern Europe increasing its role in Ruukki's engineering operations

The plan is in line with Ruukki Engineering's strategy to consolidate operations and strengthen its engineering competences on future growth areas particularly in Central Eastern Europe and China. Ruukki Engineering's customers are increasingly moving their own manufacturing processes to these areas, where Ruukki also has capabilities to serve them.

 

The move is expected to affect 106 persons at Hässleholm and 36 persons at Oskarström. According to plan, these sites will be closed by the end 2009.

 

"Engineering customers are increasingly focusing their operations outside the Nordic market. By centralising our operations to larger units we are able to boost our efficiency and profitability and further improve our customer service. Regrettably, this also means job reductions in the units concerned," says Tommi Matomäki, President of Ruukki Engineering division.

 

Due to closing of the units, employer-employee negotiations will be initiated with personnel.

 

These actions are expected to result in non-recurring costs of approximately EUR 5 million that will be booked for the second quarter of 2009.

 

Tommi Matomäki, President, Ruukki Engineering, tel. +358 20 59 28809

 

 

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 13,300 people. Net sales in 2008 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. 

 

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