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Rautaruukki plans Eur6 million steel production capacity scale-up

Finnish metal producer Rautaruukki is to ramp up its steel frame production capacity in Finland with Eur6 million ($7.8 million) of investments at its manufacturing facilities in Ylivieska and Seinajoki, as demand for bridge and building materials continues to grow apace, the company said Monday.

Over the next 18 months the company plans to employ an additional 30 staff at Ylivieska, which will be enlarged. At the same time improved efficiency and workplace safety measures are to be introduced as the company moves towards becoming a fully-integrated supply operation.

"Our response to the increasing demand in bridge and building construction is to strengthen local production throughout our operating area," said Ruukki Corporation President Saku Sipola in a statement.

"These investments will speed up our growth as a total delivery supplier in the construction business, especially in the Nordic countries," he added.

The company last year undertook a manufacturing scale-up program at its Raahe works in Finland, a hot strip mill that produces high-strength steel grades. It also completed the second stage of an automation scheme at the same location in July. A hot stripped coiler to accommodate the output was installed in September.

The divestment of the Ruukki's reinforcing steel division Ovako in September 2006 signaled its exit from the long steel private sector, and with a decided focus on the infrastructure construction market now apparent, its net sales for 2007 are expected to develop in line with growth targets, stated the company.

Monday's announcement closely follows last week's publication of the company's 2006 full year results, which showed net sales of Eur3.682 billion, up from Eur3.654 billion in 2005, against a drop in operating profit to Eur529 million from Eur618 million the previous year.