Ruukki to improve cost efficiency at the Raahe ...

Rautaruukki Corporation Stock exchange release 9 April 2014 at 9.00am EEST

Ruukki to improve cost efficiency at the Raahe steel mill by new blast furnace PCI system

Rautaruukki is to replace the blast furnace oil injection system at the Raahe steel mill with a new pulverised coal injection (PCI) system. The aim is to improve steelmaking cost efficiency by reducing raw material costs. The total investment will be around EUR 65 million and will be spread over slightly more than two years. In addition, work is underway on replacing the converters in the steel plant at the Raahe Works.

Pulverised coal injection (PCI) will replace the existing oil injection system, which has been in use in the blast furnaces since 1987. With PCI, finely pulverised coal dust is injected into the blast furnace through the hot blast tuyeres. The coal will replace more expensive injection oil and coke. Injection coal is the most commonly used additional reduction agent in blast furnaces to save coke.

Claudius Peters Projects GmbH, which is part of the Claudius Peters Group, has been selected to supply the injection system. Claudius Peters Group designs and manufactures innovative material handling and processing systems for many industrial sectors, as well as coal pulverisation and injection systems for the cement, steel and aluminium industries and for power production Claudius Peters Group GmbH is a wholly owned subsidiary of Langley Holdings plc, a privately owned multi-disciplined UK engineering group.

The new system will be brought into use during the second half of next year. The new technology will have no impact on the workforce. Also the environmental impacts will be minor - carbon dioxide emissions will decrease, whereas dust emissions will increase slightly and also electricity consumption will grow.

The project involves coal storage, handling, drying and pulverising systems, which will be located in the immediate proximity of the blast furnaces. Construction work associated with the project can take place whilst production is running. The degree of domestic origin of the investment will be around 65% and design, construction and installation work will have a direct impact on employment in Finland of around 430 person-years.

Work is also underway at Ruukki's Raahe Works on replacing the converters in the steel plant. The existing converters are 26 years old and will be replaced by modern, more cost efficient converters. The project is worth about EUR 22 million and is scheduled for completion by the end of 2015.

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

Rautaruukki Corporation

Taina Kyllönen
SVP, Marketing and Communications

Ruukki specialises in steel and steel construction. We provide customers with energy-efficient steel solutions for better living, working and moving. We have around 8,600 employees and an extensive distribution and dealer network across some 30 countries including the Nordic countries, Russia and elsewhere in Europe and the emerging markets, such as India, China and South America. Net sales in 2013 totalled €2.4 billion. The company's share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS). www.ruukki.com
DISTRIBUTION:
NASDAQ OMX Helsinki
Main media
www.ruukki.com

---

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Rautaruukki Oyj via Globenewswire

HUG#1775798