Ruukki Engineering plans to discontinue manufacturing of welded components in Sweden - Central Eastern Europe increasing its role in Ruukki's engineering operations

Rautaruukki Corporation Stock exchange release 10 June 2009 at 16:45

Ruukki Engineering plans to discontinue the manufacturing of welded
components at its Hässleholm and Oskarström units in Sweden.

The plan is in line with Ruukki Engineering's strategy to consolidate
operations and strengthen its engineering competences on future
growth areas particularly in Central Eastern Europe and China. Ruukki
Engineering's customers are increasingly moving their own
manufacturing processes to these areas, where Ruukki also has
capabilities to serve them.

The move is expected to affect 106 persons at Hässleholm and 36
persons at Oskarström. According to plan, these sites will be closed
by the end 2009.

"Engineering customers are increasingly focusing their operations
outside the Nordic market. By centralising our operations to larger
units we are able to boost our efficiency and profitability and
further improve our customer service. Regrettably, this also means
job reductions in the units concerned," says Tommi Matomäki,
President of Ruukki Engineering division.

Due to closing of the units, employer-employee negotiations will be
initiated with personnel.

These actions are expected to result in non-recurring costs of
approximately EUR 5 million that will be booked for the second
quarter of 2009.

For additional information, please contact:
Tommi Matomäki, President, Ruukki Engineering, tel. +358 20 59 28809


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 13,300 people. Net sales in
2008 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.

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www.ruukki.com