Rautaruukki
Rautaruukki to adjust its tube business

Rautaruukki / 

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Rautaruukki Corporation  Stock exchange release 4 November 2008 at 14:00

Rautaruukki to adjust its tube business

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

News Source: NASDAQ OMX

04.11.2008  Financial News transmitted by DGAP
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Language:     English
Issuer:       Rautaruukki
              
               
              Finland
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         FI0009003552
WKN:          
 
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