Change in the Rautaruukki Group's Business Model

Change in the Rautaruukki Group’s Business Model

Steelorbis is reported that Finland's flat steel producer Rautaruukki has recently approved a change in the Group's business model, which will become effective from 1 September 2003 onwards. The new business model is customer-oriented and it is expected to increase the sales growth and to acquire a higher level of profitability. The reorganization will cause Rautaruukki to establish a new production division to take place in all its steelmaking operations with set-up of four different market-oriented division. The new market divisions are metal products, building and construction, mechanical engineering and metal fabrication. Each division will be responsible for developing product and service applications, product processing and technical support. Moreover, reorganization aims to lower fixed costs, so that the structures of sales and distribution organizations in particular is streamlined and administrative overlaps are pared down. Further development of Rautaruukki's customer-oriented new business model will be based on the chosen customer segments and ranges of solutions arising from customer's need and the market area emphasis.