Rautaruukki - Company Announcement

End of employer-employee negotiations initiated by Rautaruukki in Finland on 1 December 2008

Rautaruukki Corporation Stock exchange release 29 January 2009 at 12.00

End of employer-employee negotiations initiated by Rautaruukki in Finland on 1
December 2008 

Employer-employee negotiations initiated by Rautaruukki on 1 December 2008 at
the Raahe and Hämeenlinna works and at the company's other sites in Finland
have now ended. The negotiations resulted in a decision to reduce the workforce
by some 460 persons, with around 250 of these reductions being implemented
through various pension arrangements. Temporary layoffs were also decided in
the negotiations. 

The negotiations resulted in a decision to reduce the workforce at the Raahe
Steel Works by some 140 persons. Efforts will be made to carry out all of these
reductions through various pension arrangements. At the Hämeenlinna Works, the
workforce will be reduced by some 80, with around 50 of these reductions being
implemented through pension arrangements. A total of some 240 reductions will
be made at other sites, with around 60 being carried out through pension
arrangements. The reductions will take place mainly during the first half of
2009. Where possible, efforts will be made through relocation and retraining to
help persons facing redundancy find work at the company's other sites. 

Due to market conditions, the company will temporarily lay off approximately
400 people at Raahe and around 170 at Hämeenlinna at any one time. Temporary
layoffs will affect a total of some 3,200 people at different sites. The time
and length of layoffs will vary according to site. 

Rautaruukki will assist in the re-employment of persons facing redundancy.
Support will include local training programmes carried out in association with
the employment authorities. In addition, data about persons facing redundancy
will be collected centrally to ensure any vacancies arising in the company are
primarily offered to redundant employees. 

On 1 December 2008, Rautaruukki announced it had initiated employer-employee
negotiations because of rapidly weakening market conditions and in connection
with the company‘s corporate-wide operational excellence programme launched in
October 2008. As a result of personnel arrangements and other actions to
improve operational efficiency, the company recognised non-recurring costs of
around EUR 11 million in the fourth quarter of 2008. 

At the start of the negotiations, it was estimated that a maximum of 520
reductions were needed in Finland. The outcome of the negotiations is a total
loss of approximately 460 jobs at the company's Finnish sites. This figure
includes the numbers announced today, those announced earlier at the Kurikka
unit and the reductions resulting from closure of the steel service centre in
Tampere, Finland. 

See also the stock exchange release dated 1 December 2008

For further information, please contact:
Sakari Tamminen, President & CEO, tel. +358 20 592 9075
Sakari Kallo, SVP, Hot-Rolled Plate and Strip Products, tel. +358 20 592 2210
(Raahe) 
Janne Pirttijoki, SVP, Cold Rolled, Coated and Tubular Products, tel. +358 20
592 5200 (Hämeenlinna) 

Rautaruukki Corporation

Anne Pirilä
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 15,000 people. Net sales in 2007 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. www.ruukki.com 
DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.ruukki.com