March 13, 2006
08:30 CET
Rautaruukki, SKF and Wärtsilä explore strategic options for their ownership in Ovako
Rautaruukki Oyj Stock Exchange Release 13 March 2006 at 9.30
Rautaruukki Corporation, AB SKF and Wärtsilä Corporation, the shareholders of Oy
Ovako Ab, are conducting a review of strategic options for their holding in
Ovako, which may include a partial or total divestment of their shareholdings in
Ovako.
Ovako was established in May 2005, when the owners combined their long steel
businesses into a jointly owned new company. Rautaruukki, SKF and Wärtsilä
currently own 47.0%, 26.5% and 26.5% of Ovako, respectively. The synergy
potential arising from the combination of the businesses is expected to be fully
achieved by the end of 2008.
With 16 production sites and some 4,600 employees in Europe, Ovako is a leading
producer of engineering long steel products for the European rolling bearing,
heavy vehicle, automotive and general engineering industries. Pro forma net sales
in 2005 amounted to 1.3 billion euros and pro forma EBIT, excluding one-off
items, to 175 million euros.
Rautaruukki, SKF and Wärtsilä have retained SEB Enskilda Corporate Finance to
assist in the evaluation of strategic options for Ovako.
For further information:
Mikko Hietanen, CFO, phone: +358 20 592 9030
Rautaruukki Corporation
Taina Kyllönen
VP, Corporate Communications
Ruukki supplies metal-based components, systems and integrated systems to the
construction and mechanical engineering industries. The company has a wide
selection of metal products and services. Ruukki has operations in 23 countries
and employs 12,000 people. Net sales in 2005 totalled EUR 3.7 billion. The
company's share is quoted on the Helsinki Exchanges (Rautaruukki Corporation:
RTRKS). The Corporation has used the marketing name Ruukki since 2004.
www.ruukki.com
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Helsinki Exchanges
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www.ruukki.com