Outokumpu Oyj - Company Announcement

Outokumpu to adjust production capability due to higher order intake

STOCK EXCHANGE RELEASE
June 25, 2009 at 10.35 am

Outokumpu will increase its production capability as the order intake
for deliveries after the summer vacation period is showing some
recovery. Temporary layoffs for some 700 employees at the Tornio
plant will be adjusted accordingly and the personnel has been
informed today.

In the past weeks Outokumpu's order intake for stainless steel has
increased somewhat from the earlier very low levels. The reduction of
inventories by distributors and end-users seems to have ended and the
increase in the nickel price has triggered some purchasing activity.
There are, however, no signs of recovery in the underlying demand for
stainless steel.

Outokumpu has been operating at about 50-60% capacity utilization in
the first half of 2009. The Group will now take actions to adjust the
production capability to allow for some recovery in the delivery
volumes for the fourth quarter of this year. The plan is however not
to return to full production capacity at this stage. Delivery volumes
in the third quarter will remain at depressed levels due to capacity
constraints and maintenance shutdowns.

The changes in the production plans will impact the on-going
temporary layoffs at Outokumpu's Tornio plant in Finland. The
currently idled melt-shop will start production one month earlier
than planned and the employees will be back at work from the
beginning of September. Working shifts at the steel production lines
will be increased and the extent of temporary layoffs is reduced
accordingly. Altogether the changes apply to some 700 employees. The
fixed period temporary layoffs for Kemi Mine and Ferrochrome Works
will continue until October as planned. The part-time temporary
layoffs for maintenance and support functions employees will be
implemented as planned and their need is reviewed quarterly.

Tornio Works in Finland employs 2 350 people of which over 1 800 have
been in the scope of the fixed period or part-time temporary layoffs
since April.

Outokumpu's guidance given on April 23, 2009 will be updated in
connection with the publishing of the second quarter 2009 interim
report on July 23, 2009.


For further information, please contact:

Pekka Erkkilä, EVP - General Stainless, tel. +358 9 421 5503, mobile:
+358 40 514 8121
Antti Pihko, SVP - Tornio Works, tel. +358 16 454 278, mobile +358 40
848 2948


OUTOKUMPU OYJ
Corporate Management

Ingela Ulfves
Vice President - Investor Relations & Financial Communications
tel. + 358 9 421 2438, mobile +358 40 515 1531
ingela.ulfves@outokumpu.com
www.outokumpu.com

Attachments:

ENG adjust production capacity.pdf