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EMPLOYEE AND UNION CONSULTATIONS ON THE FIXED COST REDUCTION PROGRAM OF OUTOKUMPU GROUP COMPLETED

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OUTOKUMPU OYJ  STOCK EXCHANGE RELEASE  JANUARY 4, 2006 AT 1.00 PM


EMPLOYEE AND UNION CONSULTATIONS ON THE FIXED COST REDUCTION
PROGRAM OF OUTOKUMPU GROUP COMPLETED

The fixed cost reduction program was announced on September 26,
2005 with the target to reduce the Group’s fixed costs by 10% in
each stainless business unit, Corporate Management and Group
functions.
       
Based on the plans of the business units, Corporate Management and
Group functions employee and union consultation processes
commenced in November, and have now been completed.
       
Some half of the fixed cost reduction is coming from other than
personnel costs. The total reduction in the Group’s personnel, by
the end of 2006, will be 796 employees in total. Out of the total,
477 will be lay-offs, and the rest will consist of e.g.
retirements, resignations and terminations of fixed term
contracts. The total reduction of personnel in Finland is 314, in
Sweden 349 and in other countries 133. The effect in some of the
larger business units is as follows: Tornio Works 192, Outokumpu
Stainless Tubular Products (OSTP) including closure of the
Sorsakoski tube mill 64, Corporate Management and Group functions
58, in Finland, and Avesta Works 130, OSTP Sweden 90, Degerfors 61
and Thin Strip 36, in Sweden.
       
The Group-level reduction will be some EUR 100 million annually,
as targeted, and the reduced fixed-cost running rates will be in
place during the second half of 2006, with full effect achieved in
2007. The amount of non-recurring costs to be booked in the fourth
quarter 2005 results from the fixed cost reduction program is some
EUR 30 million.
       
For further information, please contact:

Timo Vuorio, EVP - Human Resources
Tel. +358 9 421 2460, mobile +358 400 508 812,
e-mail: timo.vuorio@outokumpu.com

Eero Mustala, SVP - Corporate Communications
Tel. +358 9 421 2435, mobile +358 40 504 5146,
e-mail: eero.mustala@outokumpu.com


OUTOKUMPU OYJ
Corporate Management

Eero Mustala
SVP - Corporate Communications

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