Rautaruukki - Company Announcement

Ruukki to initiate a project to improve steel business competitiveness - target is profitable business also at a utilisation rate of 80 per cent

Rautaruukki Corporation Stock exchange release 1 February 2012 at 9.10am EET

Ruukki Metals is to initiate a project aimed at operations across the division
to achieve a permanent annual improvement of around EUR 50 million in earnings
performance and also profitable business when production is running at 80 per
cent, which is low for the steel industry.

Steel demand in Ruukki Metals' main market area in Europe is forecast to grow
moderately during the next few years, but to remain at a lower level than during
the previous peak demand in 2007. However, growth in steel production in China
has resulted in clearly higher prices of the raw materials used in steel-making
than 2007 price levels. Demand cycles in the steel market, especially with
regard to standard steel products, seem to have become faster due to the change
in the business environment described above. To improve its competitiveness,
Ruukki Metals is looking at ways to increase cost efficiency and business
flexibility to respond especially to the changed business environment in
standard steel products. The markets for special steel products - high-strength,
wear-resistant and coated steel products - have grown clearly better than those
for standard products in recent years. This situation is not expected to change
significantly in the near future.

Ruukki Metals is to initiate a project to improve competitiveness. The project
aims at a permanent annual improvement of around EUR 50 million in earnings
performance and at ensuring business profitability also at a production
utilisation rate of 80 per cent, which is low for the steel industry. The
project will kick off with an analysis, among other things, to identify the
potential to reduce variable and especially fixed costs, improve the efficiency
of business models, increase flexibility in the cost structure and improve the
efficiency of support functions.

The analysis will be carried out and the targets set by the end of the first
quarter, after which decisions on any further actions will be made. The full EUR
50 million earnings improvement being pursued is expected to be achieved during
2013. The schedule will be determined once the analysis has been completed.

For more information, please contact:
Olavi Huhtala, Executive Vice President, Ruukki Metals, tel. +358 20 592 9157

Rautaruukki Corporation
Taina Kyllönen
SVP, Marketing and Communications

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 some 30 countries and
employs around 11,800 people. Net sales in 2011 totalled around EUR 2.8 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


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