Minerals and wood processing
Focus on minerals business and industrial wood-based business. The priority for new investments lies
in the international markets.
All the preparations on Kostroma forest industry project were cancelled in March 2008 mainly due to Kostroma region administration; subsequently all Russian projects were discontinued in February 2009.
The company's Board redefined the group strategy in May 2008 which involved a greater focus on business operations in wood processing and striving to expand in the minerals business. As a part of the strategic change, the Group sold its Care Services business and certain metal industry assets, and partially disposed of its Furniture Business.
Ruukki Group Plc’s CEO Matti Vikkula resigned the duty on 31 July 2008; Alwyn Smit took up the position of CEO on 12 September 2008.
Based on the general meeting decision in October 2008, the Group diversified into minerals business via acquisition of chrome ore and ferrochrome businesses, thereby enlarging the Group into a new industry and new geographical areas. After the acquisition the Group has two main business areas: Minerals and Wood Processing business.
In May 2009, Ruukki further expanded its minerals business into South Africa and diversified its minerals portfolio into charge chrome, silico manganese and stainless steel alloy when acquiring the majority stake in Mogale Alloys, a company engaged in minerals smelting operations. The acquisition provides Ruukki a platform for future expansion in South Africa.
At the end of June 2009, the Group announced it had entered into an agreement whereby it intends to merge Sylvania Resources Ltd into Ruukki. Sylvania is active in platinum group metals (PGM) business. The acquisition was cancelled in October 2009.
During the fourth quarter of 2009, the Group’s Wood Processing business changed its focus to increase the relative importance of house building and to decrease the importance of sawmills. As a part of this strategic change, the Group sold Lappipaneli Oy’s business and disposed of its stake in Tervolan Saha ja Höyläämö Oy.
The Board set up a Management Executive Committee in November 2009. A CEO was appointed for the Wood Processing segment in October and for the Minerals segment in November 2009.
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