“Our objective is to move closer to our customers in the value chain. The purchase of Velsa is a decisive strategic step towards our goal of offering customers tailored component and system deliveries. We firmly believe that a clear opening exists in the market for a flexible, reliable system supplier such as Ruukki Engineering. We expect the transaction to have a slightly positive impact on our result right from the start”, says Mikko Hietanen, CFO at Rautaruukki Oyj.
Ruukki delivers total solutions for the construction, mechanical engineering and metal fabrication industries. The company has a wide selection of products and services in metal products. Ruukki has operations in 24 countries and it employs about 12000 people. The net sales in 2003 totalled EUR 3 billion. The company is listed at the Helsinki Exchanges.
Velsa is a leading manufacturer of cabins for mobile machines in the Nordic countries. The company, which is based in Kurikka in western central Finland, has specialized in supplying tailor-made cabs for mobile machines on a turnkey basis. Velsa also possesses in-depth expertise in other sub-units for mobile machines such as frame solutions. The company’s net sales in 2003 totalled EUR 42 million and are expected to exceed EUR 47 million in 2004. The company has grown rapidly in the past few years and the profitability of its operations has exceeded Ruukki’s long-term profitability targets. The company employed 396 people at the end of September 2004.
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