Finnish steelmaker Rautaruukki's steel product manufacturing division, Ruukki Production, is to merge with Ruukki Metals as of 1 February 2009, to make to make its steel business more efficient.
After the merger, Rautaruukki's corporate structure will be composed of two divisions, Ruukki Construction and Ruukki Engineering, that will specialise in the solutions business, while Ruukki Metals division will become the new focus of Rautaruukki's steel business. Segment reporting within Rautaruukki will not change.
Sakari Tamminen, president & CEO of Rautaruukki Corporation, commented, "Merging the large production works, tube works and service centres forming the steel business into a new seamless entity will enable us to improve the flexibility and efficiency of the steel business. The aim is a clear improvement in delivery accuracy and customer service. The removal of overlapping functions will also mean more efficient use of resources and capital, and improve cost efficiency."
Rautaruukki supplies metal-based components, systems and integrated systems to the construction and engineering industries, offering a wide selection
of metal products and services. Rautaruukki has operations in 26 countries and employs 15,000 people.