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Rautaruukki to Merge Steel Products Manufacture with Ruukki Metals
01/09/2009 - Rautaruukki announces plans to merge its Ruukki Production steel product manufacturing division with Ruukki Metals as of February 1, 2009.
Rautaruukki announced plans to merge Ruukki Production (its steel product manufacturing division) with Ruukki Metals as of February 1, 2009.
The new division will be headed by Ruukki Metals President Olavi Huhtala, who has served Rautaruukki in a number of executive positions since 1987.
The new division merges the company’s large production works, tube works and service centers into one comprehensive steel business, which the company said will help to improve both flexibility and efficiency. “The aim is a clear improvement in delivery accuracy and customer service,” said Rautaruukki Corp. President & CEO Sakari Tamminen. “The removal of overlapping functions will also mean more efficient use of resources and capital, and improve cost efficiency.”
With completion of the merger, Ruukki Metals' management board will comprise Olavi Huhtala, President of the division; Kari Lehtinen, Senior Vice President, Sales; Sakari Kallo, Senior Vice President, Production; Pekka Kangas, Senior Vice President, Supply Chain Management; and Riku Mäkinen, Senior Vice President, Finance and Controlling.
Under terms of his contract, Heikki Rusila, who is currently President of Ruukki Production, will retire in late 2009. As of February 1, 2009, he will serve as senior adviser to management, with responsibility for investment services, energy and environmental matters and corporate-wide safety development and related improvements. Rusila reports to President & CEO Sakari Tamminen.
The company said the merger also will help it streamline its corporate structure, which will now comprise Ruukki Construction and Ruukki Engineering, specializing in the solutions business, plus Ruukki Metals division, which will become the new focus of the steel business. Segment reporting within Rautaruukki will remain unchanged.
As of February 1, Rautaruukki's Corporate Management Board will comprise Sakari Tamminen (Chairman), President & CEO; Mikko Hietanen, CFO and Deputy to the President & CEO; Saku Sipola, President, Ruukki Construction; Tommi Matomäki, President, Ruukki Engineering; Olavi Huhtala, President, Ruukki Metals; and Marko Somerma, Chief Strategy Officer.
Rautaruukki supplies metal-based components, systems and integrated systems to the construction and engineering industries, including a wide selection of metal products and services. Rautaruukki has operations in 26 countries and employs 15,000 people, and its net sales totaled EUR 3.9 billion in 2007. The corporation uses the marketing name Ruukki.
