AvestaPolarit to continue rolling at Degerfors Stainless

AvestaPolarit to continue rolling at Degerfors Stainless AvestaPolarit has today informed trade union representatives and employees of its plans to continue rolling at Degerfors Stainless' billet and bar rolling mill. The rolling mill was originally due to be closed in connection with the closure of the melting shop, which will take place at the end of September. Following the closure of the melting shop in Degerfors, the feedstock for the billet and bar rolling mill will be supplied by the company's melting shop in Sheffield. According to the strategic decision taken in August 2001 regarding the transfer of Long Products volumes from Degerfors to Sheffield in the UK. The original plan was to use the services of Corus for hire rolling of blooms. In view of recent announcements made by Corus, AvestaPolarit has decided to continue with the existing rolling route in Degerfors. AvestaPolarit's local management team at Degerfors Stainless has instead drafted a competitive proposal for continuing operations at the billet and bar rolling mill, and this proposal has now been approved by the company's management. It is estimated that the continuation of business operations at this new business unit will provide job opportunities for some 50 people. In August 2001, the number of redundancies originally announced was 330, which has since been reduced to around 225 people through measures such as the expansion of the Group's Hot Rolled Plate operations at the site and early retirement agreements. Following the decision announced today, the total number of redundancies is estimated at around 175 people. The decision represents a unique opportunity for Degerfors. An expansion of the Group's Hot Rolled Plate operations at the site has already been announced and the Long Products business unit will now retain parts of its business operations there. For Degerfors, this will mean the further development of activities in both Long Products and Hot Rolled Plate. For further information, please contact: Peter Holes - Senior VP Long Products Phone: +44 (0)114 261 3444 or +44 (0)7715 011 059 e-mail: peter.holes@avestapolarit.com Peter Samuelsson - General Manager - Degerfors Stainless Phone: +46 (0)586 47067 or +46 (0)70 656 734 e-mail: peter.samuelsson@avestapolarit.com Leif Rosén - Senior VP Hot Rolled Plate Phone:+46 (0)586 47 600 or +46 (0)70 330 4186 e-mail: leif.rosen@avestapolarit.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/06/02/20030602BIT00740/wkr0001.doc http://www.waymaker.net/bitonline/2003/06/02/20030602BIT00740/wkr0002.pdf