Rautaruukki to acquire leading Russian steel constructor Ventall

Rautaruukki Corporation Stock Exchange Release 31 March 2006 at 9.00 
 
Rautaruukki Corporation is strengthening its position in the strongly growing
Russian construction market and has reached agreement on the purchase of the
leading Russian steel constructor Ventall from the company's operative
management. Ventall designs and supplies steel frame structures and sandwich
elements used in wall and roofing structures for the Russian market. The price
for the shares is EUR 97.5 million. The agreement includes a possible supplement
to the price, a maximum of EUR 27.5 million, that depends on the financial
performance in 2006 and will be paid only if profitability improves significantly
from the 2005 level. As part of the transaction Rautaruukki will take over the
company's interest-bearing debts of EUR 3 million. The transaction still requires
the approval of competition authorities. The transaction is expected to be
finalised in May 2006.
 
Ventall is the leading steel constructor in Russia, located in Obninsk in the
Kaluga region, some 100 kilometres south of Moscow. The company had 1238
employees at the end of 2005. Ventall had net sales in 2005 of some EUR 70
million and an operating profit of EUR 15.5 million. Ventall has completed most
of a EUR 30 million expansion programme that will triple its production capacity
and enable significant growth in net sales, which are forecast to be some EUR 110
million in 2006.
 
"The purchase of Ventall is a strategically important step for Ruukki in
expanding our solutions business. The acquisitions of PPTH in Finland and Steel-
Mont in Slovakia have strengthened our knowhow in steel construction and we are
now obtaining a share in the growing construction market in Russia," states
President & CEO Sakari Tamminen.
 
Ruukki's goal is to be one of the leading suppliers of metal-based construction
solutions in the Nordic countries, central eastern Europe, Russia and Ukraine.
Ruukki estimates that commercial construction will increase considerably in the
next few years in Russia. Ruukki values the steel construction market in Russia
at about EUR 700 million, with Ventall having about 7 per cent of the market.
Ventall has a 15 per cent market share in sandwich elements. Ruukki's net sales
in Russia totalled some EUR 70 million in 2005. The purchase of Ventall will more
than double the net sales.
 
"Ventall has a strong market position in Russia and modern production technology.
Ruukki's and Ventall's design expertise in steel structures and complementary
construction components significantly increase our service capabilities in key
customer segments in Russia and will also support our growth in Ukraine," says
Saku Sipola, President of Ruukki Construction.
 
 
Further information:
Mr. Sakari Tamminen, President & CEO, tel. +358 20 592 9075
Mr. Mikko Hietanen, CFO, tel. +358 20 592 9030
Mr. Saku Sipola, President, Ruukki Construction, tel. +358 20 592 8979
 
 
Conference call
 
The conference call (in English) will be held today at 14.30 Finnish time (12.30
UK time). To attend the conference call, please call to the following telephone
number +44 (0)20 7162 0125, password: Rautaruukki, around 5-10 minutes before the
conference starts.
 
 
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.
 
 
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