Wärtsilä Corporation STOCK EXCHANGE RELEASE March 13, 2006, 9:30 am Finnish time
Rautaruukki Corporation, AB SKF and Wärtsilä Corporation, the shareholders of Oy Ovako Ab, are conducting a review of strategic options for their holding in Ovako, which may include a partial or total divestment of their shareholdings in Ovako.
Ovako was established in May 2005, when the owners combined their long steel businesses into a jointly owned new company. Rautaruukki, SKF and Wärtsilä currently own 47.0%, 26.5% and 26.5% of Ovako, respectively. The synergy potential arising from the combination of the businesses is expected to be fully achieved by the end of 2008.
With 16 production sites and some 4,600 employees in Europe, Ovako is a leading producer of engineering long steel products for the European rolling bearing, heavy vehicle, automotive and general engineering industries. Pro forma net sales in 2005 amounted to 1.3 billion euros and pro forma EBIT, excluding one-off items, to 175 million euros.
Rautaruukki, SKF and Wärtsilä have retained SEB Enskilda Corporate Finance to assist in the evaluation of strategic options for Ovako.
For further information:
Mr Raimo Lind, Executive Vice President, CFO, Wärtsilä Corporation, phone: +358 10 7095 640