Rautaruukki to make its steel business more efficient: manufacture of steel products to be merged with Ruukki Metals

Rautaruukki’s steel product manufacturing division, Ruukki Production, is to merge with Ruukki Metals as of 1 February 2009. The merger will streamline the corporate structure, which in future will comprise two divisions - Ruukki Construction and Ruukki Engineering - specialising in the solutions business and Ruukki Metals division, which will become the new focus of the steel business. Segment reporting within Rautaruukki will remain unchanged.

-Merging the large production works, tube works and service centres forming the steel business into a new seamless entity will enable us to improve the flexibility and efficiency of the steel business. The aim is a clear improvement in delivery accuracy and customer service. The removal of overlapping functions will also mean more efficient use of resources and capital, and improve cost efficiency" says Sakari Tamminen, President & CEO of Rautaruukki Corporation.

Olavi Huhtala, who is currently President of Ruukki Metals, has been appointed to head the new division resulting from the merger. He has served Rautaruukki in a number of executive positions since 1987. With effect from 1 February 2009, Ruukki Metals’ management board will comprise: Olavi Huhtala, President of the division; Kari Lehtinen, Senior Vice President, Sales; Sakari Kallo, Senior Vice President, Production; Pekka Kangas, Senior Vice President, Supply Chain Management and Riku Mäkinen, Senior Vice President, Finance and Controlling.

Under the terms of his contract, Heikki Rusila, who is currently president of Ruukki Production, will retire in late 2009. As of 1 February 2009, Heikki Rusila will serve as senior adviser to management, with responsibility for investment services, energy and environmental matters and corporate-wide safety development and related improvements. Rusila reports to President & CEO Sakari Tamminen.

As of 1 February 2009, Rautaruukki’s Corporate Management Board will comprise: Sakari Tamminen (chairman), President & CEO; Mikko Hietanen, CFO and deputy to the President & CEO; Saku Sipola, President, Ruukki Construction; Tommi Matomäki, President, Ruukki Engineering; Olavi Huhtala, President, Ruukki Metals and Marko Somerma, Chief Strategy Officer.

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.