Ruukki Group Oyj - Company Announcement

RUUKKI GROUP SIGNS FRAMEWORK AGREEMENTS WITH MCC FOR CONSTRUCTION OF TWO DC CHROME FURNACES AND 250MW POWER PLANT IN SOUTH AFRICA

07:00 London, 09:00 Helsinki, 1 September 2010 - Ruukki Group Plc, Stock        
Exchange Release                                                                

RUUKKI GROUP SIGNS FRAMEWORK AGREEMENTS WITH MCC FOR CONSTRUCTION OF TWO DC     
CHROME FURNACES AND 250MW POWER PLANT IN SOUTH AFRICA                           

Ruukki Group Plc (“Ruukki” or the “Company”) (LSE: RKKI, OMX: RUG1V) announces  
the signing of two framework agreements with Metallurgical Group Corporation Ltd
(”MCC”) for the construction of two DC chrome furnaces and a 250 megawatt (“MW”)
power plant in South Africa. This forms part of Ruukki's stated strategy to    
grow its Minerals Business in South Africa through increasing production        
capacity and expanding market share.                                            

DC Chrome Furnaces                                                              
Under the framework agreement, MCC will be the procurement and construction     
contractor for the construction of two 70MW, single electrode submerged arc DC  
furnaces with two tap holes.  GLPS is the design and engineering company and are
currently in the process of design works and detailed engineering. These are   
expected to be completed by fourth quarter 2010. Once the detailed design and   
engineering has been completed, negotiations to convert the framework agreement 
into a formal contract between Ruukki and MCC will start and are expected to be 
concluded by the end of June 2011. Ruukki is currently conducting a site        
selection exercise and expects to make a final decision by the end of 2010.     

Power Plant                                                                     
Ruukki intends to build a 250MW power plant in South Africa to expand its energy
options for its expanding operations. Under the framework agreement, MCC will  
be the engineering, procurement and construction contractor for the project and 
will also conduct the project's Feasibility Study (“FS”). The FS is due to     
commence during the fourth quarter 2010, during which the most appropriate      
technology either coal gasification combined cycle, conventional coal fired     
boiler or fluidised bed boiler / gasifier will be determined in light of South  
Africa's limited water supply. The FS is expected to be completed by the end of
the second quarter 2011. Upon completion of the FS, negotiations to convert the 
framework agreement into a formal contract will take place.                     

Commenting on the agreements Alwyn Smit, CEO of Ruukki, said “I am pleased to   
announce a major step forward towards our objective of expanding our South      
African production capacity with the signing of these agreements. MCC is a well 
known and respected leader in the field of construction projects for the mining 
industry and has been operating in Africa over the past 40 years. We believe    
that owning a power plant is critical for our growth plans as it will ensure a  
consistent supply of power to our furnaces at a competitive rate. We look      
forward to updating shareholders on this as we seek to convert these framework  
agreements into formal contracts.”                                              

RUUKKI GROUP PLC                                                                
Alwyn Smit                                                                      
CEO                                  

Ruukki Group is an industrial group focusing on minerals and wood processing    
businesses. Ruukki Group Plc's shares are listed on NASDAQ OMX Helsinki and the 
London Stock Exchange.                                                          


For additional information, please contact:                                     

Ruukki Group Plc                                                                
Alwyn Smit, CEO: +44 20 7368 6763                                               
www.ruukkigroup.fi                                                              

Investec Bank plc                                                               
Stephen Cooper: +44 20 7597 5104                                                

Pelham Bell Pottinger                                                           
Charles Vivian: +44 20 7861 3126                                                
James MacFarlane: +44 20 7861 3864                                              

Note to Editors:                                                                
Metallurgical Group Corporation Ltd (“MCC”) is a leading state-owned Chinese    
enterprise involved in engineering, procurement and construction for the mining 
industry, equipment manufacture, papermaking and real estate development.  The  
Company has been building construction projects across Africa for the past 40   
years and has developed a strong reputation.