April 25. 2006
Rautaruukki to purchase colour coating line from Ukraine
Rautaruukki Corporation has agreed to purchase the Ukrainian company AZST-Kolor CJSC. AZST-Kolor owns a colour coating production line in Antratsit, eastern Ukraine, and its coated products meet Ruukki's construction needs. The production line was made by the Italian company Fata and has an annual colour coating capacity of 80 000 tonnes. At present the line is not in operation but Ruukki estimates that it will start up the line in July and that this should reach maximum capacity in two years. The price for the production line is EUR 4.5 million, plus the company's cash funds when the transaction is completed, an estimated EUR 0.45 million. The company is free of debt. The transaction still requires the approval of competition authorities. The transaction is expected to be completed in May 2006.
The purchase of AZST-Kolorin serves Ruukki's construction customers in the growing market in central eastern Europe, Russia and Ukraine. Colour-coated sheet steel is used in construction as the outer material in sandwich elements. It is also used in roofing and as the cladding material for example in facades. With this acquisition Ruukki is ensuring delivery accuracy and the availability of high-quality raw materials on competitive terms in its growing core market.
Ruukki supplies metal-based components, systems and integrated systems to the construction and mechanical engineering industries. The company has a wide selection of metal products and services. Ruukki has operations in 23 countries and employs 12,000 people. Net sales in 2005 totalled EUR 3.7 billion. The company's share is quoted on the Helsinki Exchanges (Rautaruukki Corporation: RTRKS). The Corporation has used the marketing name Ruukki since 2004.
For further information
Mikko Hietanen, CFO, tel. +358 20 592 9030
VP, Corporate Communications
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