Rautaruukki’s new business model
As previously reported at SteelOrbis, Finnish steelmaker Rautaruukki was in preparations to change Group's business model. The new business model is customer-oriented and it is expected to increase the sales growth and acquire a higher level of profitability. The company established four different market-oriented divisions. The new market divisions are metal products, construction solutions, mechanical engineering solutions and metal fabrication solutions and the production division. This business model will increase contact and cooperation between customers and the Group. The metal products division's products are flat steel, tubular, long steel, reinforcing and other metal products. The residential and commercial building and infrastructure sectors are construction solutions division's customers. The customer sectors for the mechanical engineering solutions division are the marine and offshore, pulp and paper and lifting and transport equipment industries. Furthermore, the customer sectors for the metal fabrication solution division are the electronics, automotive, household appliance and light engineering industries. The production division includes the production of plate and strip products and cold rolled and coated products in Finland, tubular products production in the Nordic countries and the production of bar and reinforcing products in Sweden and Norway. The Group's financial reporting for 2003 will be taken into account according to old business divisions.