Rautaruukki is to expand its operations in Russia and build a steel service centre next to its production plant in the city of Obninsk to the southwest of Moscow. The EUR 13 million investments will strengthen Ruukki’s position in Russia, broaden the product range and service capability from construction to increasingly encompass the engineering industry.

The new steel service centre will begin operations in late 2009 and provide laser and plasma cutting, as well as edging services especially for engineering industry customers in Central Russia, Moscow and the Kaluga region. During the construction phase, Ruukki will make use of its existing production facilities and machinery in Obninsk to provide wear resistant and high strength structural steels and related services.

The Obninsk service centre will especially serve the lifting, handling and transportation equipment industry. Using Ruukki’s parts processing services, customers will be able to focus on their core business and product assembly. The benefits are clear: more efficient customer production process, no need to invest in parts processing, faster market entry and improved end-product quality, lists Olavi Huhtala, President, Ruukki Metals.

Ruukki has over 2,000 employees in Russia, with around 1,800 in Obninsk. Ruukki has had a strong presence on the Russian steel construction market since 2006, when it acquired Ventall, Russia’s leading supplier of steel frames and sandwich panels.