Rautaruukki signs contract to deliver special s...

Press release 28 October 2008

Rautaruukki is strengthening its business in special products and
parts processing with the start of long-term partnership with VR,
Finland's rail transport provider, to deliver special steels for
freight wagons. Deliveries under the new contract will continue until
2012 and will be worth a total of around EUR 7 million by the end of
2009.


Ruukki will deliver high-strength Optim steels and wear-resistant
Raex steels to VR's workshop in Pieksämäki, Finland, where they will
be made into sludge wagons and wagons for carrying steel coils, iron
ore and timber. The contract also includes cutting and edging wagon
parts at Ruukki's steel service centres in Seinäjoki and Raahe, from
where they will be delivered to VR for welding and assembly. In
addition, future parts deliveries will also make use of Ruukki's
laser cutting and welding expertise at the steel service centre in
Uusikaupunki.

"Ruukki's high-strength steels enable lighter wagon structures than
earlier. This in turn means higher payloads without increasing total
wagon weight. Thanks to the multiplying effect of wagon performance,
transport will be much more efficient," says development manager Juha
Mälkiä from VR Cargo. "Ruukki is an extremely dependable supplier and
delivery times have been kept to, which has enabled production
planning way into the future. Another definite advantage has been
good, consistent steel quality from one delivery lot to the next,"
confirms Markku Närhi, buyer at VR's Pieksämäki workshop.

Ruukki and VR have worked together on various development projects
for a couple of years. "Development work in the planning of new wagon
types and joint projects in respect of special steel grades have
built up mutual expertise and both parties want to continue this
work," says Senior Vice President Ilkka Homanen, from Ruukki Metals.

For further information, please contact:
Ilkka Homanen, Senior Vice President, Ruukki Metals, tel. [phone]
9330
Markku Närhi, Buyer, VR Pieksämäki workshop, tel. [phone]


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.


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