Outokumpu: temporary layoffs at Tornio plant avoided, the same level of savings achieved by other actions

STOCK EXCHANGE RELEASE
December 1, 2008 at 10.45 a.m.


Outokumpu has concluded the statutory negotiations on full or
part-time temporary layoffs at the Tornio plant. The proposal on
initiating the negotiations was given on November 10, 2008 due to the
current low order load. The company and the employee representatives
were actively seeking for alternatives to temporary layoffs. They
agreed on a solution where temporary layoffs can be now avoided by
substantial cost savings, performing more of the maintenance work by
Outokumpu's own people, investing time in training, operational
improvement programs and encouraging the use of flexible working
hours and other leaves. The cost savings can be achieved by cutting
the expensive weekend shifts, freezing the production bonus system
and by a general cost cutting program. The actions that have now been
agreed will result to almost the same level of savings as were
targeted in the original proposal for negotiations.

If the market situation continues to be difficult, Outokumpu will
take additional action to improve its profitability. Outokumpu Group
employs 8700 people, of which 2300 at the Tornio Works in Finland.

For further information please contact:

Pekka Erkkilä, EVP - General Stainless, Outokumpu Oyj, mobile +358 40
514 8121
Antti Pihko, SVP - Tornio Works, tel. +358 16 454 278, mobile +358 40
848 2948

OUTOKUMPU OYJ
Corporate Management

Ingela Ulfves
Vice President - Investor Relations and Financial Communicationstel. + 358 9 421 2438, mobile +358 40 515 1531
ingela.ulfves@outokumpu.com
www.outokumpu.com