Rautaruukki - Company Announcement

THE EMPLOYER-EMPLOYEE NEGOTIATIONS RELATED TO RUUKKI ENGINEERING'S PROFITABILITY IMPROVEMENT PROGRAMME FINISHED IN HUNGARY AND FINLAND

Rautaruukki Oyj	Stock Exchange release        11 July 2008 at 13.15

THE EMPLOYER-EMPLOYEE NEGOTIATIONS RELATED TO RUUKKI ENGINEERING'S
PROFITABILITY IMPROVEMENT PROGRAMME FINISHED IN HUNGARY AND FINLAND 

Rautaruukki's engineering division, Ruukki Engineering, has finished
employer-employee negotiations initiated in May 2008 to improve profitability.
The negotiations concerned the division's Hungarian unit Ruukki Tisza Zrt.,
where better profitability is being sought by cutting overheads and by
improving organisational functionality. In Finland negotiations concerned
senior salaried employees in the division's Tampere, Hämeenlinna and Helsinki
units. The aim is to remove overlapping at the group, division and unit levels. 

At Ruukki Engineering's Hungarian unit Ruukki Tisza Zrt. a new enterprise
resource planning system (ERP) will be introduced as part of efficiency
improvement measures. The deployment of Ruukki's common systems and working
methods at the unit will reduce overlapping work and simplify administrative
structures. It has been agreed to cut the number of white collar jobs by a
total of 190 during the course of this year and the next. During the first
phase, which takes place in July 2008, the number of administrative staff will
be reduced by 108, when the new organisational structure and processes are
introduced. The next phases will take place in October 2008 and January 2009.
At the moment there are 275 white collar employees at the Hungary unit. 

A total of 60 senior salaried employees were subject to the negotiations in
Ruukki Engineering's Finnish units in Helsinki, Tampere and Hämeenlinna. When
the negotiations began, it was estimated that 25 jobs would be affected. As a
result of negotiations 17 white collar jobs in division administration will be
cut. Some of the persons affected will be offered new jobs at Ruukki. The
negotiation result also includes retirement agreements and terminations of
seven contracts. The measures will begin immediately and be completed during
the autumn. 

Ruukki Engineering launched a programme to improve productivity and
profitability across the division in February 2008. The measures aim at
improving the division's operating profit by EUR 20 million in 2008. In the
same context, Ruukki Engineering adopted a new organisation and management
model to support divisional growth and profitability. The new management model
clarifies financial and operational responsibilities and improves the use of
resources. 

Ruukki Engineering has operations in seven countries and employs around 3,000
people. 


For further 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 24 countries and
employs 14,600 people. Net sales in 2007 totalled EUR 3.9 billion. The
company's share is quoted on the OMX Nordic Exchange Helsinki (Rautaruukki Oyj:
RTRKS). The Corporation uses the marketing name Ruukki. 


DISTRIBUTION 
OMX Nordic Exchange Helsinki 
Main media
www.ruukki.com