Rautaruukki - Company Announcement

Ruukki is to initiate employer-employee negotiations within the steel business to improve efficiency - studies initiated to improve efficiency in administration

Rautaruukki Corporation Stock exchange release 27 September 2012 at 9.15am EEST

Ruukki is to initiate employer-employee negotiations affecting Ruukki Metals and
the Marketing and Communications function. These negotiations are part of
Ruukki's projects launched this year to improve the company's competitiveness.
It is estimated there is a need for a total of 250 redundancies. In addition to
the efficiency improvement programmes underway, studies are being initiated to
improve efficiency also in corporate administration.

Ruukki Metals is to initiate employer-employee negotiations concerning the
efficiency of its operations. The negotiations affect most of Ruukki Metals'
production organisation in Finland, which means a total of around 3,500 persons.
The Raahe Works and Hämeenlinna Works are the largest units affected by these
negotiations. An estimated maximum of 230 persons in all, of which 160 are
workers and 70 salaried employees, are affected by the need for redundancies. In
addition, employer-employee negotiations concerning lay-offs of the entire
personnel will be initiated at the Kankaanpää and Pulkkila sites in Finland.

Also employer-employee negotiations will be initiated in the Marketing and
Communications function in pursuit of improved operating efficiency. The
negotiations affect around 70 persons in Ruukki countries. An estimated maximum
of 20 people in all will be affected by the need for redundancies.

The negotiations now being initiated are part of Ruukki's projects launched this
year to improve the company's competitiveness. The projects in the steel and
construction businesses seek to achieve a total permanent annualised improvement
of EUR 100 million in earnings performance and profitable business also when
production is running at 80 per cent, which is low for the steel industry."The flexibility and savings now being sought are important for the
competitiveness of our business and we have worked with the personnel to
identify ways to improve efficiency. In addition to improving ways of working,
our efficiency improvement targets also regrettably require redundancies. Our
aim is to improve our long-term competitiveness, which requires a permanently
lower cost level, in addition to the challenges already referred to earlier. On
top of this, the Sulphur Directive, for example, threatens to increase future
transportation costs within our steel production," explains Olavi Huhtala,
Executive Vice President of Ruukki Metals.

The negotiations seek savings totalling around EUR 10 million in annual costs
and it is estimated that the cost cuts will be achieved in full during the
second and third quarters of 2013. Efforts will be made to carry out some of the
redundancies through retirement and by deployment.

In addition to the efficiency improvement programmes underway, studies will be
initiated to improve efficiency also in corporate administration. The study
affects all administrative functions that serve the whole of Ruukki or its
divisions.

For further information, please contact:
Olavi Huhtala, EVP, Ruukki Metals, tel. +358 20 592 9157

Rautaruukki Corporation
Taina Kyllönen
SVP, Marketing and Communications

Ruukki provides its customers with energy-efficient steel solutions for better
living, working and moving. Ruukki operates in some 30 countries and employs
around 11,800 people. Net sales in 2011 totalled EUR 2.8 billion. The company's
share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS).

DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.ruukki.com


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