Employer employee negotiations initiated by Ruukki Metals Oy in May 2012 and concerning the centralization and efficiency of operations in steel service centers and the sales organisation in Finland have now been completed. Likewise, employer employee negotiations initiated in some corporate business support functions have also been completed.

These negotiations have resulted in a workforce reduction of 48 people, nine workers and a total of 39 salaried and senior salaried employees, through redundancy and retirement. In addition, nine persons will be offered new jobs within the company. The savings pursued have also been achieved through natural wastage and internal transfers in respect of 25 persons. The redundancies will be carried out mostly during summer this year.

These efficiency improvement measures are part of the project initiated in February 2012 to improve the competitiveness of Ruukki's steel business.

Mr Olavi Huhtala EVP of Ruukki Metals said that "We are seeking a permanent annual improvement of EUR 50 million in earnings performance and profitable business also when production is running at 80 per cent, which is low for the steel industry. Regrettably, greater operating efficiency has also meant redundancies. Our aim is to improve our long term competitiveness, which requires a lower cost level and flexible business models."

Source - Rautaruukki Corporation

(www.steelguru.com)