Rautaruukki - Company Announcement

Ruukki and CapMan create Fortaco, Europe's leading manufacturing partner for the engineering industry - Ruukki focuses on construction and special steels business

Rautaruukki Corporation Stock Exchange Release 17 October 2012 at 9:00 am EEST

Rautaruukki Corporation (Ruukki) and funds managed by CapMan (CapMan) have
agreed to combine units of Komas and units of Ruukki Engineering division to
form a new company. The name of the company will be Fortaco and it will be
Europe's largest actor in its field.

Ruukki's ownership in the company to be formed will be 19.0 per cent, and in
addition Ruukki will receive a cash payment of around EUR 25 million and equity-
linked securities worth around EUR 81 million in the company - totaling around
EUR 114 million, which corresponds to the total value of assets which Ruukki
will transfer to the new company. Completion of the transaction is subject to
approval from the competition authorities and is expected to be finalised by
early December 2012. The transaction will not affect Ruukki's financial
reporting before the arrangement is finalised."The engineering industry sub-suppliers are expected to provide increasingly
stronger cost-competitiveness in component deliveries as well as specialised
know-how. This new combination will have efficient component production units
located near the customers' markets. Success of the new company will be
essential for Ruukki as regards both the development in steel volumes and the
expected return on invested capital" says Sakari Tamminen, President and CEO of
Rautaruukki Corporation.

Fortaco is expected to generate pro-forma net sales of approximately EUR 270
million in 2012 and will have a total of approximately 2,600 employees. The
company will be formed from the compatible and complementary units of Ruukki and
Komas. Ruukki Engineering units in Jaszbereny (Hungary), Wroclaw (Poland) and
Holic (Slovakia) as well as Kurikka, Sepänkylä and the Kalajoki component
business (Finland) will transfer to the new company. Net sales of the units
contributed by Ruukki totalled EUR 158 million in 2011. Net sales of the Ruukki
Engineering units excluded from the transaction totalled some EUR 100 million in
2011. Employees of the units concerned will transfer to the new company on their
current employment terms and conditions as "old employees". Komas will
contribute with its units in Janow Lubelski (Poland), Narva (Estonia) and
Sastamala, Kurikka, Parkano and Härmä (Finland)."In future, Ruukki will focus on developing the construction and special steels
businesses. The construction market offers substantial growth potential,
especially in Russia and the rest of the Eastern Europe. We also see good
business opportunities in the residential construction and construction of
energy-efficient buildings, particularly in Northern Europe. In the special
steels business, we will expand our international distribution and service
network," adds Tamminen.

Additional information:
Sakari Tamminen, President and CEO, Rautaruukki Corporation, tel.
+358 20 592 9075
Marko Somerma, EVP, Ruukki Engineering & CSO Rautaruukki Corporation, tel.+358
20 592 9137

Press and analyst conference:
Ruukki, CapMan and Komas will host a joint conference for the press and analysts
starting at 11am at Event Arena Bank, Unioninkatu 20, Helsinki (room Meeting
point). The conference will be held in Finnish.

Rautaruukki Corporation
Taina Kyllönen
SVP, Marketing and Communications

Ruukki provides its customers with energy-efficient steel solutions for better
living, working and moving. Ruukki operates in some 30 countries and employs
around 11,800 people. Net sales in 2011 totalled EUR 2.8 billion. The company's
share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS).

DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.ruukki.com


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