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Constructing energy-efficient steel solutions

Ruukki is a market leader in the design and manufacture of energy-efficient steel construction products for a broad range of industrial applications. Philip Yorke takes a closer look at a company that continues to expand, setting new standards in quality and efficiency and outperforming the market.

Initially known as Rautaruukki, the company was founded in Finland in 1960 by the Finnish government in association with a number of leading Finnish industrials. The reason behind this cooperative venture was to ensure the availability of raw materials for the Finnish shipbuilding industry as well as for other steel-dependent industries.

With its early commitment to quality and innovation, Ruukki was the first company in the western countries to produce steel using the cost-efficient ‘continuous casting’ method. The success that the company enjoyed as a result of this innovation was exceptional, and by the end of the 1970s it was employing more than 7000 people. By the 1990s, following major investments in new plant and technology, the company expanded into the construction business and at the same time acquired a leading Finnish steel roof manufacturer: Rannila.

In 2004 the company’s steel business began to focus on the manufacture of special steel products to meet the demands of the world’s most challenging construction and engineering projects.

In October 2012, another milestone was reached with the creation of Fortaco in association with CapMan managed funds, which has become Europe’s leading manufacturing partner for the engineering industry. Today, Ruukki provides its customers with energy-efficient steel solutions for better living, working and moving. The company is operational in over 30 countries worldwide and has a workforce of over 12,000 people, of which more than 5000 are employed outside Finland. The company is quoted on the Nasdaq OMX Helsinki stock exchange and in 2011 recorded net sales of €2.8 billion.

New challenges driving business opportunities

Ruukki’s vision is to become the leading global provider of energy-efficient steel solutions in order to build a better living environment for all, together with its customers. The company has a worldwide network of dealers and distributors in the Nordic countries, Russia and elsewhere in Europe, as well as in the emerging markets of India and South America.

Today Ruukki is responding to the increasing demand for greater energy efficiency and this is driving its commitment to produce more innovative, energy-efficient steel solutions. The overall objective is to cut energy costs throughout the life–cycle of an end-user product or solution. The company offers a broad portfolio of engineering products, including building solutions, infrastructure solutions, steel products, mineral products and stainless steel and aluminium products.

In the building components sector, Ruukki’s energy-efficient steels are at work in steel frame structures, steel pile foundations, facade claddings, load-bearing sheets and prefabricated roof elements. Ruuki’s commitment to innovation is also contributing to major road and bridge infrastructure projects throughout the world. Its coils, sheets and plates include hot and cold-rolled steels, colour-coated steels and metal-coated steels. Precision tubes, pipes and hollow steel sections are also created by Ruukki to optimise energy efficiency and are the result of the company’s ongoing investments in its manufacturing processes and its firm commitment to R&D.

Leading the field in environmental management

As one of the world’s largest companies in its field, Ruukki takes its responsibilities concerning the environment very seriously. A company spokesman said, “Improving

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energy efficiency is one of the most costeffective ways to combat climate change. We aim to provide our customers with environmentally effective solutions and to continuously improve the level of environmental protection and energy efficiency of our operations.

“As a fully recyclable material, steel forms a good base for energy-efficient construction solutions. Our recyclable, wear resistant and high-strength special steel products improve the material efficiency of lifting, handling and transportation equipment and reduce energy consumption.”

Energy efficiency is systematically promoted at all Ruukki’s production sites as part of its ISO 14001 environmental management programme. Each and every person at Ruukki is responsible for their own environmental performance. In-house training provides employees with the means to manage the environmental impacts of their jobs. The company also encourages its subcontractors to take environmental issues into account during their own business operations. In addition, Ruuki constantly evaluates the impacts of its ‘logistical’ supply chain. By optimising transport routes and schedules, unnecessary transportation can be avoided and thereby minimise energy consumption.

Ruukki and Fortaco leading Europe

In December 2012 Ruukki and funds managed by CapMan agreed to combine units of Komas and units of Ruukki Engineering division, to form a new company, Fortaco. The new company will be a leading manufacturing partner for the engineering industry and Europe’s largest player in its field. Fortaco is expected to generate pro-forma net sales of around €270 million in 2013 and will have a total of more than 2600 employees.

The company has been formed from the compatible and complementary units of Ruukki and Komas. Some of the Ruukki engineering units in Hungary, Poland, Slovakia and Finland have been transferred to the new company. Fortaco represents a new ‘Tour de force’ in Europe for the development and manufacture of energy-efficient steels and innovative engineering processes. n

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