.gif?width=220&height=220&mediaprotectionhash=27a2c7b682a980edd98804d5ef3ab0afa2e746bbcbde7192e62ce4a3fe797500&ext=.gif)
Ruukki Engineering to Stop Manufacturing Welded Components in Sweden
06/11/2009 - Ruukki Engineering announces plans to discontinue the manufacture of welded components at its Hässleholm and Oskarström units in Sweden.
Ruukki Engineering announced plans this week to discontinue the manufacture of welded components at its Hässleholm and Oskarström units in Sweden.
The Ruukki division said the plan is in line with its strategy to consolidate operations and strengthen its engineering competences on future growth areas, particularly in Central Eastern Europe and China. Ruukki Engineering noted that its customers are increasingly moving their own manufacturing processes toward these areas, where Ruukki also has capabilities to serve them.
"Engineering customers are increasingly focusing their operations outside the Nordic market,” commented Tommi Matomäki, President of Ruukki Engineering division. “By centralizing our operations to larger units, we are able to boost our efficiency and profitability and further improve our customer service. Regrettably, this also means job reductions in the units concerned.”
The move is expected to affect 106 persons at Hässleholm and 36 persons at Oskarström. According to the announced plan, these sites will be closed by the end 2009. The division said that employer-employee negotiations regarding the closures would be initiated in the near future.
The closures are expected to result in non-recurring costs of approximately EUR 5 million that will be booked for the second quarter of 2009.
Rautaruukki supplies metal-based components, systems and integrated systems to the construction and engineering industries, offering a wide selection of metal products and services. Rautaruukki has operations in 26 countries, employs 14,300 people, and reported net sales of EUR 3.9 billion in 2008. The corporation uses the marketing name Ruukki.
