Finland-based steel company Rautaruukki Corporation (Ruukki) has announced the signing of an agreement with Saudi Arabian steelmaker Al-Tuwairqi Group for the sale of its two steel reinforcing businesses, Ruukki Betonstahl GmbH of Germany and Ruukki Welbond BV of the Netherlands. Rautaruukki has also stated that these transactions mark the completion of the company's withdrawal from the reinforcing steel business, which started last year.
Rautaruukki added that the transaction in question will free up capital of over €25 million. The total operating losses of the units amounted to €4 million during the first nine months of 2007.
The transaction is expected to be closed in November 2007 upon the final approval by the German competition authorities.
Rautaruukki is a supplier of metal-based components systems and integrated systems for the construction and mechanical engineering industries.