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Rautaruukki to Adjust Tube Operations

11/05/2008 - Rautaruukki announces plans to discontinue production of spiral-welded line pipes in Oulainen, Finland, and to outsource maintenance and adjust production levels at its Virsbo Works in Sweden.

Rautaruukki has announced plans to discontinue the production of spiral-welded line pipes in Oulainen, Finland, and to outsource maintenance and adjust production levels at its Virsbo Works in Sweden.
 
Although the company plans to continue producing large piles and structural pipelines at the Oulainen facility, it said that spiral-welded line pipes are not part of the company's core business.
 
Rautaruukki’s spiral-welded tube business has had net sales of around EUR 40 million a year. The market outlook for the products, which are often used in natural gas transmission and main water pipelines, is poor, as is their profitability.
 
The change is expected to affect around 70 of the 110 persons currently employed at the Oulainen works as well as 4 persons in Hämeenlinna. The company said it will make efforts to find jobs for these people elsewhere in the company.
 
The company also said that it would begin to outsource maintenance functions at its Virsbo Works in Sweden, which would result in the transfer of around 20 persons to the company that is assuming responsibility for maintenance. The company is also planning to adjust production volumes at the Virsbo works in line with profitable demand, which is expected to affect around 45 persons in the 2008 to 2009 period. The Virsbo works make small line pipes and structural tubes and currently employ 164 persons.
 
Negotiations with the personnel affected by these changes are scheduled to begin within a week. The company said these actions are not expected to result in non-recurring costs.