The company will shut down its panel and profile production units and relocate its metallic shingle production.
“We are stopping production this winter, when the season ends, and we will relocate the roofing department in Plannja’s two locations, in Bacau and Tunari, and SAAB will further decide, through its real estate department, what will happen in Bolintin Deal. The main options are rental, sale or the relocation of some other SSAB activity,” Ruukki Romania business director Marian Pirvu said Friday.
Finnish group Rautaruukki, Ruukki Romania’s former owner, merged with Sweden’s SSAB this year, regrouping civil and industrial construction businesses into the Ruukki Construction division, headquartered in Finland.
Ruukki Romania will no longer produce metallic panels, profiles and structures, which make up the largest part of its turnover, and will relocate its roofing operations to the Bacau and Ilfov units of Plannja Romania, another division of SSAB. The two companies will merge this winter to form Ruukki Construction Romania.
The shutdown and partial relocation will leave 109 people jobless, while nearly 50 employees will be relocated to the factory in Tunari, Ilfov county.
“Our strategy is to focus on roofing, not just in Romania but in all countries in the region where Ruukki operates,” said Pirvu.
Ruukki’s sales in the metallic roofing sector are seen rising to EUR7 million this year, from EUR5 million in 2013. The company expects sales to reach EUR7 million in 2015, said Pirvu.
The local metallic roofing shingle market amounts to some 16 million square meters and EUR70-80 million. Following the merger with Plannja, Ruukki Construction’s output capacity in Romania will amount to 4 million sqm.
Ruukki Romania estimates a turnover of EUR30 million this year, from EUR45 million in 2013.