Rautaruukki - Company Announcement

Ruukki to further improve efficiency and adjust construction and engineering operations in Finland

Rautaruukki Corporation Stock exchange release 3 December 2009 at 12
noon

Ruukki's construction and engineering divisions are to further
improve and adjust their operations in Finland. The organisational
structure and operating model of construction operations will be
streamlined and production efficiency improved at the plants in
Vimpeli, Alajärvi and Peräseinäjoki. There are plans to transfer the
manufacture of engineering components from Peräseinäjoki to Ruukki
Engineering's other units.

Due to these actions, employer-employee negotiations with regard to
workforce reductions and temporary lay-offs are to be initiated in
Ruukki Construction and Ruukki Engineering. Efficiency measures apply
not only to the above production units, but also to the construction
business development organisation and building construction sales. A
total of around 500 people are affected by the negotiations. It is
estimated a workforce reduction of a maximum of 100 people is
required. The extent and duration of the layoffs will become clear as
the negotiations progress.

Construction market conditions have weakened rapidly during the year.
Ruukki is restructuring commercial and industrial construction
operations in pursuit of permanent improvements whilst adjusting
operations to market conditions. Engineering industry orders have
been below forecasts and operations must consequently be adjusted in
line with weaker demand.

Actions to improve operational efficiency and adjust operations are
expected to deliver annualised permanent cost savings of around EUR
4.5 million and will be effected mostly during the first half of
2010.

Ruukki has a total of around 6,200 workers in Finland.

For further information, please contact:
Saku Sipola, President, Ruukki Construction, tel. +358 20 592 8979
Tommi Matomäki, President, Ruukki Engineering, tel. +358 20 592 8809
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 27 countries and employs 12,200 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.

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