Algol to transfer commercial steel operations to Onninen

Algol Oy and Onninen Oy have signed a contract for the transfer of Algol´s
commercial steel business interests to Onninen. Combining the commercial steel
operations of both companies will create a strong and broadly specialized
steel unit. The transaction is to be executed as soon as possible.

In connection with the deal, the 24 Algol employees currently working in the
commercial steels unit will become employees of Onninen. They will join the
business unit Industry, part of the Onninen Finland division.
Furthermore, the deal applies to the business sector`s inventories, related
machinery and equipment and the lease for the warehouse facilities.

According to Algol´s Managing Director Magnus Bargum, divestment of commercial
steel is a natural solution in the ongoing process of focusing the operations
on the three main sectors of the Algol Group: industrial chemicals, machinery
and equipment, and products for the healthcare sector. The deal guarantees the
future of Algol´s steel operations in a new form, offering them new views and
growth possibilities.

Commercial steels represent one of Algol´s oldest business areas and account
for almost 10 per cent of group turnover. Today, the commercial steels unit has
concentrated particularly on long commercial steel, which is concerned as an
optimal supplement to Onninen´s range of steel pipes, profiles and special
steels.

Onninen is a family-owned company and one of Europe´s leading enterprises
providing comprehensive materials services. The Onninen Group has outlets in
the Baltic countries, Norway, Poland, Sweden and Russia. At the end of 2002,
Onninen had 2,500 employees, roughly a thousand of whom worked outside Finland.
In 2002, Onninen´s turnover was 930 million euros.

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