Ruukki Construction to focus on the roofing business in Romania

Ruukki Construction Press release 14 August 2014 at 10.30am EEST Ruukki Construction to focus on the roofing business in Romania Ruukki Construction is to focus on developing the residential roofing business in Romania and plans to withdraw from the commercial construction business. The discontinuation of the Romanian business will have limited financial impact on Ruukki Construction and the SSAB Group. In conjunction with the combination of SSAB and Rautaruukki, operations serving the companies‘ construction customers have been merged into a new division – Ruukki Construction. Ruukki is a well-known brand in the residential roofing business and sees growth potential in this business also in the Romanian market. However, market conditions in the steel structure and component businesses in Romania have remained weak, and Ruukki has been unable to turn the businesses back to profitability. As a consequence, Ruukki plans to discontinue these businesses and focus solely on the roofing business. There are plans to use the existing sandwich panel line and profiling lines in Romania in Ruukki’s other plants elsewhere. Ruukki currently employs 151 persons in Romania. Planned discontinuation of the commercial construction business is estimated to result in the need for a workforce reduction of some 109 persons. Focusing on the roofing business makes sense in the present situation. This would be a logical continuation of the similar decision we made recently with regard to Ukraine. The component business in other countries has developed well. Transferring the sandwich panel line would enable us to also avoid future investments in other factories, says Marko Somerma, President, Ruukki Construction. For more information, please contact:Marko Somerma President, Ruukki Construction, tel. +358 20 592 9137 Ruukki Construction serves customers in the construction business. We deliver products and services ranging from design to installation to promote the business of our corporate customers, who include investors and construction companies. Consumer customer and professional roofers are served with roofing products and installation services under the Plannja and Ruukki brands. In addition to retail outlets, we serve roofers via Ruukki Express stores and Plannja service points across 9 countries. Ruukki Construction has around 3,500 employees and production in 16 plants in Europe. Comparable net sales in 2013 were Euro740 million. Ruukki Construction is a division of SSAB. SSAB is a Nordic and US-based steel company operating in over 50 countries. The Company share is quoted on NASDAQ OMX Stockholm and Helsinki. www.ssab.com
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