Rautaruukki - Corporate Action

Ruukki Metals to further improve efficiency and adjust operations in Finland

Rautaruukki Corporation Stock exchange release 22 October 2009 at
12.05

Ruukki Metals, which is responsible for Ruukki's steel production and
steel service centres, is to further improve long-term efficiency and
profitability and to adjust operations to weak market conditions. To
this end, Ruukki Metals is to initiate employer-employee negotiations
regarding workforce reductions and temporary layoffs."We're seeking permanent improvements and substantially better
profitability. Service centre operational efficiency will be improved
by centralising the product portfolio and expertise between units to
provide faster, more flexible customer service. Regrettably, these
measures will also mean workforce reductions and temporary layoffs,"
says Olavi Huhtala, President, Ruukki Metals.

There are plans to merge the Puurtajankatu service centre in
Järvenpää with the Asponkatu service centre in Järvenpää, Finland. In
addition, there are plans to merge the operations of the service
centre in Seinäjoki with those of the one in Kiiluntie in Raahe. The
operational efficiency of the steel centres in Hyvinkää and Naantali,
Finland is to be improved. It is estimated that actions to improve
the operational efficiency of all seven steel service centres in
Finland will result in a need to reduce the workforce by a total of
around 175 persons. The employer-employee negotiations will explore
redeployment and re-training possibilities, as well as pension
arrangements.

In addition, due to weak market conditions, employer-employee
negotiations are to be initiated regarding possible temporary layoffs
in plate and prefabricated steel product operations in Raahe and in
operations at the steel service centres in Hyvinkää, Asponkatu in
Järvenpää and Kiiluntie in Raahe, Finland. A total of around 670
people are affected by the negotiations. The implementation of
layoffs will become clear at each site as the negotiations progress.

Ruukki Metals division employs around 5,500 people. It is estimated
that improved operational efficiency will deliver permanent savings
of around EUR 20 million at an annual level. Measures to adjust
operations are estimated to deliver savings of around EUR 7 million
and will be implemented during the first half of 2010.

For further information, please contact:
Olavi Huhtala, President, Ruukki Metals, tel. +358 20 592 9157
Sakari Kallo, Senior Vice President, Production, Ruukki Metals, tel.
+358 20 592 8888


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 26 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
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www.ruukki.com