Rautaruukki - Company Announcement

RAUTARUUKKI TO CLOSE SINTER PLANT AT RAAHE WORKS BY THE END OF 2011

Rautaruukki Oyj	Stock exchange release	12 March 2008


RAUTARUUKKI TO CLOSE SINTER PLANT AT RAAHE WORKS BY THE END OF 2011

Rautaruukki is to close down sinter plant operations at the Raahe Works in
Finland by the end of 2011. The company will switch over to using only iron
pellets as a raw material in the iron-making process and has a long-term pellet
supply contract with LKAB of Sweden. Closing the sinter plant will
significantly reduce emissions at the Raahe Works. 

The iron-making process currently uses a million tonnes of iron pellets and 2.3
million tonnes of iron ore concentrate each year. The switchover to using iron
pellets will make the sinter plant redundant. In the sinter plant, limestone
and coke breeze are mixed with the iron ore concentrate and sintered into lump
form or sinter for use in the blast furnaces as a raw material for iron-making.
The sinter plant has been in operation at the Raahe Works since 1964. 

-Switching over to iron pellets will enable us to significantly reduce
emissions at the Raahe Works. Carbon dioxide emissions will decrease by 10 per
cent or 500,000 tonnes a year, dust emissions will be cut by 37 per cent and
sulphur emissions by 64 per cent. Energy consumption at the Raahe Works will
fall by 8 per cent or 1.16 million megawatt hours a year. This is equivalent to
the annual energy consumption of around 60,000 small family houses, says Sakari
Kallo, Vice President, Hot-rolled Plate and Strip Products. 

The sinter plant employs around 120 people at the Raahe Works. 

-The people released as a result of closing the sinter plant are needed for
other jobs in the company. Some 250 people, of which over 200 are workers, will
be retiring from the Raahe Works between 2008 and 2011, says Kallo. 

The decision to close the sinter plant will mean additional depreciation of
around EUR 1.9 million a year during the next four years. 

Further information is available from:
Sakari Kallo, Vice President, Hot-Rolled Plate and Strip Products, Ruukki
Production, tel. +358 20 592 2210 

Rautaruukki Corporation

Anne Pirilä 
SVP, Corporate Communications and Investor Relations 

Rautaruukki supplies metal-based components, systems and integrated systems to
the construction and mechanical 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 has used the marketing name Ruukki
since 2004. 
www.ruukki.com 

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