Eastern European Markets

April 5th, 2009

Rautaruukki to make major solution delivery to new power plant in Estonia

Rautaruukki is to deliver and install the steel frame and envelope structure for Fortum's new combined heat and power plant (CHP) in Pärnu, Estonia. Rautaruukki's customer is Andritz Oy. The delivery is an example of Rautaruukki's strategic progress towards increasingly wider total deliveries in the Baltics.

"This contract is strong proof of the progress we have made with our solutions strategy in the Baltics. The role in the project of the local player we recently acquired in Lithuania and the integration of that company's operations into our international service network are extremely important strategically. We are constantly developing our project businesses so as to be able to serve customers locally but with global know-how," says Saku Sipola, President, Ruukki Construction.

The steel frame for the boiler house will be made partly at Ruukki's plants in Finland and in Gardzdai, Lithuania. Ruukki acquired Lithuanian steel structure company Gensina in late 2008 to strengthen its delivery capacity and coverage in the Baltics. The sandwich panels used in the envelope structure will be made in Alajärvi, Finland and the load-bearing sheets in Pärnu, Estonia.

For the customer, Ruukki's construction solution means controlled, competitive accelerated construction. In addition, the solution reduces the workforce need at the construction site, lowers construction risks and improves safety. Customer benefits are achieved by combining well-designed, compatible systems into a practical solution that is both fast and safe to install.

Similar solutions from Ruukki have been earlier successfully employed in several comparable construction projects.

The new plant will produce both heat and power. The boiler house will have around 600 square metres of floor space and the highest part will be as tall as a 12-storey building. Deliveries to the customer, Andritz Oy, will start in July 2009 and will be completed mainly by the end of 2009. Fortum will commission the plant in 2010.

About Rautaruukki:
Rautaruukki supplies metal-based components, systems and integrated systems to the construction and engineering industries. The company has a wide selection of metal products and services. Rautaruukki has operations in 26 countries and employs 14,300 people. Net sales in 2008 totalled EUR 3.9 billion. The company's share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS). The Corporation uses the marketing name Ruukki

Further information:
Jouni Metsämäki, SVP
Northern and Eastern Europe, Ruukki Construction, tel. +358 20 592 9114
Villu Voogel, Sales Director, Ruukki Construction, tel. +372 50 53 190

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