Rautaruukki Corporation to discontinue production of spiral-welded line pipes

Nordic Business Report, Nov 4, 2008

NORDIC BUSINESS REPORT-4 November 2008-Rautaruukki Corporation to discontinue production of spiral-welded line pipes(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Finnish metal-based components and systems supplier Rautaruukki Corporation (OMX Helsinki:RTRKS) said on Tuesday (4 November) that it plans to discontinue the production of spiral-welded line pipes in Oulainen, Finland.

Spiral-welded line pipes are used in natural gas transmission and mains water pipelines and are not part of Rautaruukki's core business, the company said.

The spiral-welded tube business has had net sales of around EUR40m a year. The market outlook for the products is poor, as is their profitability, Rautaruukki said.

A total of 110 people are employed at the Oulainen works. The change is expected to affect around 70 workers in Oulainen and four in Hameenlinna.

The large piles and structural pipelines used in construction will continue to be made at Oulainen.

In addition, maintenance functions at the Virsbo works in Sweden are to be outsourced and production volume at the works is to be adjusted in line with profitable demand. The adjustment of production volumes is expected to affect around 45 persons during 2008-2009.

Rautaruukki, headquartered in Helsinki, Finland, supplies metal-based components, systems and integrated systems to the construction and mechanical engineering industries. The company has 14,600 employees in 24 countries and reported net sales of EUR3.88bn in 2007.

One British pound (GBP) is worth approximately 1.27 euros (EUR).

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