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