SKF and the Finnish companies Rautaruukki and Wärtsilä have signed a “Memorandum of Understanding” expressing their intention of combining business for long steel products into a jointly owned new company. The new company will comprise SKF’s subsidiary Ovako Steel, Wärtsiläs subsidiary Imatra Steel and Rautaruukki’s long products subsidiaries Fundia Special Bar, Fundia Wire and Fundia Bar & Wire Processing. SKF will own 26.5 percent of the new company, which will be a leading European steel producer of long products with 18 production sites in six countries. The new company’s pro forma 2004 net sales amount to 1.3 billion euros. Definite agreements are expected to be signed by the end of June.