RUUKKI GROUP: SOLUTION PROPOSED FOR KEMIJÄRVI PULP MILL


Ruukki Group has contacted Stora Enso in writing proposing negotiations on the  
acquisition of the Kemijärvi pulp mill. Moreover, Ruukki Group is willing to    
enter into long-term wood and pulp delivery co-operation.                       

“In our opinion, large-scale transportation of wood raw material out of the     
Eastern or Northern Lapland is not economically or ecologically feasible. The   
co-operation model that we have proposed would ensure continuous pulp deliveries
into Stora Enso paper mills at the current levels” states Matti Vikkula, Chief  
Executive Officer of Ruukki Group Plc.                                          

Ruukki Group believes that over the coming years, forest cutting in Northern and
Eastern Finland could be significantly increased, both from private forests as  
well as from state-owned forests, applying the principles of sustainable        
development and respecting environmental values. One additional option to       
enhance the pulp mill raw material procurement could be the utilisation of      
Russian wood chip deliveries into the Kemijärvi mill. Furthermore, there has    
been public information about bio energy production opportunities which should  
be further in and more detail analysed in conjunction with the Kemijärvi pulp   
mill.                                                                           

The Kemijärvi pulp mill would strategically fit into Ruukki Group's domestic    
sawmilling business as well as into the planned Kostroma pulp mill in Russia.   
The knowhow of Kemijärvi mill could be utilised in Kostroma thereby also        
generating new jobs in Northern Finland.                                        

Ruukki Group currently has considerable sawmilling operations in Northern       
Finland. According to Ruukki Group's judgement, the closure of the Kemijärvi    
mill would have negative impact on raw material deliveries and side-product     
flows of Ruukki Group's sawmilling segment. As a local operator in Northern     
Finland, Ruukki Group has good ability to strengthen the role of Kemijärvi mill 
as the motor of the local economy, industries and forest sector.                

“The potential for the continuing of the Kemijärvi pulp mill is naturally       
considerably dependant upon the current owner. We have wanted to bring to their 
consideration an option with which a solution can be found for a difficult      
challenge. Hence it would be both possible and financially viable to combine    
various aims and targets.” says CEO Matti Vikkula.                              

For any further information, please contact:                                    

Matti Vikkula                                                                   
Chief Executive Officer                                                         
Ruukki Group Plc                                                                
Telephone +358 45 6700 606                                                      
matti.vikkula@ruukkigroup.fi