August 30, 2008

Rautaruukki eying construction boom in Russia

Mr Sakari Tamminen CEO of Rautaruukki Oyj recently said that it is stepping up output in Russia as a construction boom extends to cities beyond Moscow and St Petersburg. Mr Tamminen said the Rukki plans to triple output at its Ventall plant in Russia.

Mr Tamminen that the healthy growth is more and more outside Moscow and St Petersburg and there are about 20 big cities with very high drive in consumption.

According to the Economy Ministry Russia's economy, the world's 10th biggest expanded 7.7% in the first eight months as construction and retail sales thrived. Growth in emerging markets, including Russia, may be 8.4% this year.

Mr Tamminen said demand for Rautaruukki's products is also increasing in Poland and Hungary, while Turkey and Kazakhstan may become a new frontier for economic growth, leading to non residential construction. It also started building a factory in Romania to serve the local and Bulgarian markets as both nations benefit from joining the European Union.