Hirviset Oy, a subsidiary of Ruukki Group's furniture business segment, starts co-determination negotiations for financial and production-related reasons. All of the approximately 60 employees at the Lestijärvi factory will be subject to these negotiations. The Lestijärvi factory was to major extent destroyed in the fire that took place at the end of June 2007, after which the production has been continued at Lestijärvi factor in small scale only. Majority of Lestijärvi employees are currently employed by other factories of Incap Furniture group. The management of Incap Furniture has investigated alternatives to replace the destroyed production capacity. Based on financial and production-related reasons it has been decided that this capacity will be rebuilt at the other factories of Incap Furniture group. The current small-scale furniture production at Lestijärvi is generating losses, and will be fully discontinued. All employees of Hirviset Oy will be offered job at the other factories of Incap Furniture. The insurance compensation processes related to Lestijärvi fire are still partially open, but they are expected to be finalised over the coming months. The net expected insurance compensation, taking into account the asset write-downs, to be shown in the fiscal year 2007 profit and loss account of Incap Furniture group amounts to somewhat more than EUR 2 million. The expenses to be caused by the factory close-down, potential layoffs or employee relocations are not expected to be significant. RUUKKI GROUP PLC MATTI VIKKULA CHIEF EXECUTIVE OFFICER Ruukki Group focuses on wood-based industrial business operations. Currently the group operations are located mainly in Finland, but in future the targeted emphasis is principally in Russia. Ruukki Group Plc's share is listed on Helsinki Stock Exchange. In the OMX Nordic Exchange the shares of the company are traded in the so-called mid cap sector, in the industrials segment. For further information, please contact: Antti Kivimaa Senior Executive Vice President Ruukki Group Plc Telephone +358 400 501 780 www.ruukkigroup.fi Veli Torvinen Managing Director Incap Furniture Oy Telephone +358 40 551 0665 www.incapfurniture.fi
RUUKKI GROUP'S FURNITURE BUSINESS SEGMENT STARTS CO-DETERMINATION NEGOATIONS IN ITS LESTIJÄRVI FACTORY
| Source: Afarak Group Plc