Outokumpu Oyj - Company Announcement

Outokumpu starts implementation of the efficiency improvements announced in April

STOCK EXCHANGE RELEASE
16 May 2011 at 2.00 pm EET


Outokumpu started statutory negotiations on 6 April 2011 after announcing plans
to improve profitability, gain more efficiency as well as remove overlapping
activities in sales, supply chain and supporting functions in Europe. Statutory
negotiations have now been concluded in Finland and negotiations and
consultation process will be finalised in other major operating countries in the
next couple of weeks.

As  a result, the job reductions in sales, supply chain and supporting functions
in  Europe will  be in  the range  of the  original plan, which is some 350 jobs
globally  by the  end of  2011. Job reductions  in Finland  and Sweden  are also
expected  to be in the range of the original plans, about 90 jobs in Finland and
80 in  Sweden. Cost-savings are  estimated to be  EUR 27 million per  year as of
2012. Non-recurring  costs of EUR 18 million related  to the job reductions will
be booked in the second-quarter 2011 accounts.

Outokumpu operates in 34 countries and at the moment employs 8 100 people.


For further information, please contact:

Esa Lager, CFO, tel. + 358 9 421 2516

Päivi Lindqvist, Senior Vice President - Communications and IR, tel.
+358 9 421 2432, mobile +358 40 708 5351


OUTOKUMPU OYJ



Outokumpu is a global leader in stainless steel with the vision to be the
undisputed number one. Customers in a wide range of industries use our stainless
steel and services worldwide. Being fully recyclable, maintenance-free, as well
as very strong and durable material, stainless steel is one of the key building
blocks for sustainable future. Outokumpu employs some 8 000 people in more than
30 countries. The Group's head office is located in Espoo, Finland. Outokumpu is
listed on the NASDAQ OMX Helsinki.
www.outokumpu.com


[HUG#1516140]

Attachments:

ENG Improving efficiency 16052011.pdf