Rautaruukki to Change Corporate Structure in Finland
02/07/2011 - Rautaruukki announces plans to divide its Finnish operations into four different companies based on its construction, engineering, steel, and stainless steel and aluminum trading businesses.
In an effort to better reflect its business structure, Rautaruukki Corp. is to divide its Finnish operations into four different companies beginning May 1, 2011.
The arrangement is purely an administrative one under which the group will reorganize its corporate structure to correspond to its existing businesses.
As a result of the change, Ruukki's construction business, engineering business, steel business and stainless steel and aluminum trading business will each act as separate business entities. Rautaruukki Corp. will be the parent company of the new companies.
The entire business of all Finnish units will be transferred to the new companies, with personnel to be transferred without any change of employment benefits. The arrangements do not apply to the group's units outside Finland.
The demerger will have no impact on Rautaruukki Corp.'s financial reporting. Reporting segments will continue to be the construction business (Ruukki Construction), the engineering business (Ruukki Engineering) and the steel business (Ruukki Metals). Rautaruukki Corp. will continue to provide corporate support functions.
Rautaruukki supplies metal-based components, systems and integrated systems to the construction and engineering industries. The company has a wide selection of metal products and services. Rautaruukki has operations in 27 countries and employs around 11,700 people. Net sales in 2010 totaled EUR 2.4 billion. The corporation uses the marketing name Ruukki.
