Outokumpu to improve the efficiency of its tubu...

PRESS RELEASE
September 3, 2009 at 14.10 pm EET


Outokumpu is restructuring its Stainless Tubular Business Unit (OSTP)
to improve efficiency and cut costs. As a result of the strategy
process the company is selling parts of the production in Jakobstad
in Finland and optimizing the utilization of the production lines
within the unit.

Outokumpu intends to sell its square and rectangular tube business in
Jakobstad to the Finnish company Stalatube Oy, a square and
rectangular tube specialist. The tubes produced are not OSTP's core
business and increasing the market share and product range would have
required large investments. The business in question employs eight
people who will transfer to Stalatube.

Outokumpu also intends to move production from Jakobstad's old lines,
where small welded pipes are produced, to the fully integrated laser
annealing and pickling lines (the LAP lines) in Nyby in Sweden. In
addition, the production of large tubes will be moved from Jakobstad
Plate Production to the laser pickling packaging line (the LPP line)
in Jakobstad. These changes are planned to take place from January 1,
2010.

In total, about 50 employees will be affected by these changes.

"Stalatube taking over the square and rectangular tube business is an
example of market consolidation where OSTP now focuses on round
tubes. We have the world's most integrated pipe production lines in
Jakobstad and Nyby. The objective is to utilize these lines and close
less efficient operations, resulting in a lower cost structure for
OSTP", says Lasse Johansson, the head of OSTP business unit.

Outokumpu will start negotiations with personnel representatives to
find solutions for employees in the change process.


For more information, please contact:

Lasse Johansson, head of Business Unit Outokumpu Stainless Tubular
Products, tel [phone], mobile [phone]

Päivi Lindqvist, SVP Communications & Investor Relations, tel. +358 9
421 2432,
mobile [phone]


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.