Ruukki's strategic focuses - specialisation and...

Rautaruukki Corporation Stock exchange release 14 October 2010 at 9.00

Rautaruukki has outlined its strategy for the next few years. Geographically,
the focus of expansion is strongly on the emerging markets. Work continues on
strong development of the solutions businesses - construction and engineering.
The focus in the steel business is on special steel products, where synergies
can be capitalised on with the company's engineering business. In connection
with the strategy outlined, changes will be made to the responsibilities of the
Corporate Executive Board.

Based on the strategy, Ruukki has set new targets for its businesses:

- Growth in the share of emerging markets to 50 per cent of consolidated net
sales.

- Growth in the share of the solutions businesses - construction and engineering
- to 60 per cent of consolidated net sales.

- Increase the share of special steel products to 60 per cent of the company's
steel business.

- Strengthened market position in all core businesses.

"We have strengthened our effectiveness to take a new, big step forward in
Ruukki's development. Our strategic focus is to specialise, strengthen our
market position and to capitalise on growth in emerging markets. The solid
competence base and operations network in our solutions businesses, on top of
extensive special steels expertise in our steel business, give us a strong
competitive edge," says Sakari Tamminen, President & CEO.

Main growth focus on emerging markets

In recent years, Ruukki has built an extensive, strong manufacturing and sales
network to serve construction and engineering customers in the emerging markets
in Central Eastern Europe, Russia and China. Emerging markets currently account
for about 20 per cent of consolidated net sales and the target is to grow this
share to 50 per cent during the next few years.

"The target is a challenging one, but we intend to capitalise on the growth
potential offered by the emerging markets. Our products ideally suit this growth
potential. Thanks to investments made, we are able to strengthen our market
position and thus grow in all our businesses - construction, engineering as well
as steel and special steels - in emerging markets. In construction, this means a
strong market presence and new scalable products, which will be evident in, for
example, as pre-designed solutions for commercial and industrial construction.
We also believe that the construction market provides a significant opportunity
to pursue growth through consolidation in the industry. Our competitive
engineering network gives us an opportunity for strong growth in the emerging
markets through both special steel products and special-steel-based components,"
explains Sakari Tamminen, President & CEO.

Growth in solutions businesses

Ruukki is continuing the strong development of the solutions businesses -
construction and engineering. The aim is for these to account for 60 per cent of
consolidated net sales, compared to the current target of 50 per cent. More
extensive own design competence than earlier and the benefit of strong materials
expertise gives our solutions businesses a strong competitive edge.

Ruukki is strongly focusing on pre-designed construction solutions that can be
modified to meet customer needs and which combine own design and standardised,
cost-effective production. On the infrastructure and residential construction
markets, the company seeks to strengthen its market position by launching new
products and by targeting sales also at new market areas.

In the engineering business, Ruukki will focus on demanding special-steel-based
components, where it can capitalise on synergies with the company's own steel
expertise. In the same context, own customer-driven design is featuring more
strongly in products such as cabins. Work continues to boost the supply chain to
improve cost-efficiency and to strengthen sales and marketing to broaden the
customer base.

Special steels to account for significantly higher share of steel business

In the steel business, the main focuses are on specialisation and on
strengthening the market position in the Nordic countries. Ruukki will
capitalise on its strong technological competence and modern manufacturing
capacity in special steel products. During the next few years, Ruukki will grow
the share of special steels to account for 60 per cent (current target 40 per
cent), of the company's steel business.

Sales of special steels - such as high-strength, wear-resistant and special-
coated steels - will be targeted more strongly towards international markets
such as China, Brazil and Turkey, where the market outlook for special steels is
promising. In the Nordic market, the company's market position is to be
strengthened by improving customer service, delivery accuracy and the quality of
products and services throughout the supply chain. Cost-efficiency and a high
capacity utilisation rate will remain high on the agenda in the steel business.

Strong market position essential in core businesses

Ruukki will focus strongly on products and segments in which it can achieve a
strong market position. The main focus of core businesses development will be on
scalable products and business concepts that have been shown to work also in
challenging market conditions.

The geographical focus of operations will be on areas where the company sees
opportunities either to be or to develop into market leader.

Work continues on balancing business structure

To minimise the impacts of economic fluctuations on business operations, the
company is still pursuing a better balance in its business structure from
businesses such as infrastructure and residential construction products, which
are less exposed to market fluctuations, and by broadening its customer base in
the engineering business.

In business development, Ruukki is seeking product sectors that offer the
possibility of a continuous steady cash flow. Such sectors include, for example,
the use of wear-resistant steels in processes and applications where material
quickly wears out.

Changes in responsibilities of Rautaruukki's Corporate Executive Board

Ruukki is to accelerate and boost implementation of the company's growth
strategy by making changes to the responsibilities of members of the Corporate
Executive Board.

"Profitability improvement and fast implementation of changes to carry out our
strategy are now crucial. Expanding our operations into new market areas
requires both profound market area management and quicker steps in developing
new products and customer service concepts. By reorganising the responsibilities
we will have new energy and fresh approaches and ways of working in taking the
company forward," says President & CEO Sakari Tamminen.

Tommi Matomäki MSc (Tech), aged 43, has been appointed Executive Vice President,
Ruukki Construction. He is currently President, Ruukki Engineering. Matomäki
joined the company in 2008 and has a broad range of experience in managing
international business.

Marko Somerma LicSc (Tech), aged 43, has been appointed Executive Vice
President, Ruukki Engineering. He is currently Ruukki's Chief Strategy Officer.
Somerma joined the company in 2004 and has had a strong role in creating
Ruukki's growth strategy and in supporting the company's expansion, especially
into Central Eastern Europe and Russia.

Olavi Huhtala BSc (Eng), aged 48, continues to head Ruukki Metals as Executive
Vice President, Huhtala joined the company in 1987 and has headed the company's
steel business since 2005..

Saku Sipola MSc (Tech), aged 42, has been appointed Executive Vice President,
Marketing, Technology and Supply Chain Management. He is currently President,
Ruukki Construction. Sipola has extensive experience at the customer interface
in different market areas and strong technology expertise. Sipola joined the
company in 2005.

Mikko Hietanen MSc (Econ), aged 56, has been appointed Executive Vice President,
Business Development. In his new position, he will also be responsible for
corporate risk management. Hietanen joined the company in 2004 and is currently
Chief Financial Officer.

Markku Honkasalo LLM, aged 46, has been appointed Chief Financial Officer (CFO)
and a new member of the Corporate Executive Board. He joined the company in
2009 and is currently Vice President, Financing. Before joining Ruukki,
Honkasalo held a number of management positions within financing in the Nordea
Group in 1989-2003, i.a. as a head of unit at Nordea's London office. He joined
Ruukki from Myllykoski Corporation, where he served as Director, Legal and
Administration.

From 1 November 2010, the Corporate Executive Board will comprise the following
members:

- Sakari Tamminen, President & CEO and chairman of the Corporate Executive Board
- Mikko Hietanen, Executive Vice President, Business Development (deputy to the
President & CEO)
- Tommi Matomäki, Executive Vice President, Ruukki Construction
- Marko Somerma, Executive Vice President, Ruukki Engineering
- Olavi Huhtala, Executive Vice President, Ruukki Metals
- Saku Sipola, Executive Vice President, Marketing, Technology and Supply Chain
Management
- Markku Honkasalo, CFO


Financial targets unchanged

The company is keeping its financial targets unchanged:
- growth in comparable net sales > 10%
- growth in comparable operating profit > 15% of net sales
- return on capital employed > 20%
- gearing ratio ~ 60%
- dividend payout 40-60% of profit for the period

For further information, please contact:
Sakari Tamminen, President & CEO, tel. [phone]

Rautaruukki Corporation will publish its interim report for the first nine
months of 2010 on Friday 22 October at about 9am EEST.

The company will hold a Capital Markets Day for investors and analysts on
Thursday 2 December 2010 in Helsinki. The event will go through, among other
things, implementation of the strategy and market outlook.



Rautaruukki Corporation
Anne Pirilä
SVP, 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 27 countries and
employs 11,700 people. Net sales in 2009 totalled EUR 2.0 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



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