Ruukki to Reorganize Mo i Rana Plant, Shift Focus to Wind Energy
07/06/2009 - Ruukki Engineering announces plans to reorganize its operations at its Mo i Rana plant in Norway due to weak demand in the shipbuilding industry.
Ruukki Engineering announced plans to reorganize its operations at its Mo i Rana plant in Norway due to weak demand in the shipbuilding industry.
As a result of the reorganization, mill operations will be reduced to one shift operation instead of two. The company said the production adjustment would result in the reduction of 137 jobs at the plant, with the reductions to take place during the autumn. The Mo i Rana plant currently employs 255 people.
Although the Mo i Rana plant's main products are shipbuilding profiles, flange profiles for windmill towers have been the fastest growing product sector in recent years. As part of the reorganization, Ruukki Engineering President Tommi Matomäki explained that, “the Mo i Rana plant will focus on the production of flange profiles for windmill towers, since the wind power sector continues to grow.”
“At the same time, the shipbuilding industry is suffering heavily from the economic downturn,” added Matomäki. “This regrettably means adjustment to production and the loss of jobs at our plant in Mo i Rana".
The company expects the reorganization of operations to result in non-recurring costs of approximately EUR 1.2 million, which will be booked for the third 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 13,300 people, and reported net sales of EUR 3.9 billion in 2008. The corporation uses the marketing name Ruukki.
