Rautaruukki decides to restructure precision tube production
Finnish integrated steel producer Rautaruukki has decided to restructure its precision tube production at Nordisk Simplex A/S in Denmark. Also, the company is planning to close the mill during the restructure and will start layoff talks with the 115 employees. This decision is taken upon the demand and production capacity imbalance in the main market area for the Danish tube works. The market is not estimated to grow in the near future. The restructure will improve the cost efficiency and profitability of Rautaruukki's precision tube operations. The Group has also precision tube works in Finland and Germany. Rautaruukki will supply tubular products to customers via the company's other precision tube works during the restructure. The restructure is scheduled to complete in the second quarter of 2004 and will not have a significant impact on Rautaruukki's result for 2003.