Rautaruukki to discontinue the production of spiral-welded line pipes
Nov 6, 2008
Rautaruukki plans to discontinue the production of spiral-welded line pipes in Oulainen, Finland. The spiral-welded tube business has had net sales of around EUR 40 million a year. "The market outlook for the products is poor, as is their profitability" a spokesman told STEEL GRIPS.
Spiral-welded line pipes are used in natural gas transmission and mains water pipelines, for example, and are not part of Rautaruukki's core business. The large piles and structural pipelines used in construction will continue to be made at Oulainen. The change is expected to affect around 74 persons.
In addition, maintenance functions at the Virsbo works in Sweden are to be outsourced and production volume at the works is to be adjusted in line with profitable demand. The Virsbo works make small line pipes and structural tubes and currently employ 164 persons.
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