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Ruukki to Adjust Construction and Engineering Operations in Finland
12/09/2009 - Ruukki plans to streamline the organizational structure and operating model of its construction operations at plants in Vimpeli, Alajärvi, and Peräseinäjoki. It also plans to transfer the manufacture of engineering components from Peräseinäjoki to other units.
Ruukki plans to streamline the organizational structure and operating model of its construction operations and improve production efficiency at its plants in Vimpeli, Alajärvi, and Peräseinäjoki. It also has plans to transfer the manufacture of engineering components from Peräseinäjoki to Ruukki Engineering's other units.
As a result of these moves, workforce reductions and temporary layoffs are to be initiated in Ruukki Construction and Ruukki Engineering. Efficiency measures also apply to the company’s construction business development organization and building construction sales.
Around 500 people are affected by the employer-employee negotiations. Ruukki estimates that a workforce reduction of 100 people maximum is required; the duration of the layoffs will be determined as negotiations progress.
Ruukki expects the actions to deliver annualized permanent cost savings of around EUR 4.5 million and will be affected mostly during the first half of 2010. The company has around 6200 workers in Finland.
