Rautaruukki sells long product mills, buys color coating line

Finnish steelmaker Rautaruukki announced today that it signed an agreement to sell its Nordic reinforcing steel business to BT Norway AS, a 100 percent subsidiary of Bosian Time S.L. The transaction, which costs Euro 123 million, is subject to relevant regulatory approvals and it is expected to be completed by June 30, 2006. The move is in line with Rautaruukki's arrangements started last year to exit from long steel products business. The Nordic reinforcing steel business comprises Fundia Armeringsstål AS operating steel and rolling mills in Mo i Rana, Norway and distribution and manufacturing service companies Fundia Betoniteräkset Oy in Finland, Fundia Armering AB in Sweden, Fundia Armering AS in Norway and Fundia Armering A/S in Denmark. Moreover, Rautaruuki announced that it agreed to purchase Ukraine's AZST-Kolor CJSC. AZST-Kolor owns a color coating production line in Antratsit, eastern Ukraine, which has an annual capacity of 80,000 mts. Currently, the line is not in operation; however, it is expected to commence operations in July. The transaction price is Euro 4.5 million; however, the completion of the transaction is subject to approval of competition authorities. The transaction is expected to be completed in May 2006.