End of employer-employee negotiations initiated...

Rautaruukki Corporation Stock exchange release 29 January 2009 at
12.00

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. [phone]
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.
[phone] (Hämeenlinna)

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.


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


This announcement was originally distributed by Hugin. The issuer is 
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