Rautaruukki to adjust its tube business

Rautaruukki Corporation Stock exchange release 4 November 2008 at
14:00

Rautaruukki 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, for example, and
are not part of Rautaruukki's core business. The large piles and
structural pipelines used in construction will continue to be made at
Oulainen.


The spiral-welded tube business has had net sales of around EUR 40
million a year. The market outlook for the products is poor, as is
their profitability. A total of 110 persons are employed at the
Oulainen works. The change is expected to affect around 70 persons in
Oulainen and 4 persons in Hämeenlinna. Efforts will be made to find
jobs for these people elsewhere in the company.

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. Outsourcing maintenance functions
will result in the transfer of around 20 persons to the company
assuming responsibility for maintenance. The adjustment of production
volumes is expected to affect around 45 persons during 2008-2009. The
Virsbo works make small line pipes and structural tubes and currently
employ 164 persons.

Negotiations with the personnel concerning the actions resulting from
the above changes will begin within a week.

These actions are not expected to result in non-recurring costs.

For further information, please contact:
Olavi Huhtala, President, Ruukki Metals, tel. [phone]


Rautaruukki Corporation

Anne Pirilä
SVP 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:
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Main media
www.ruukki.com


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