Evraz to supply rails to Russian Railways for five years
Tags: longs , Russia , CIS , production , steelmaking , Evraz | similar articles »
Russian mining and steel producing company Evraz Group has announced that it has signed a memorandum of understanding with Russian Railways regarding a five-year contract for supply of steel rails that will come into force in 2013, and will be valid through 2017.
Under the scope of the RUR 90 billion contract, Evraz will supply Russian Railways with head-hardened rails up to 100 meters long, which is a new product for Russia and the CIS. The rails are used on high-speed railway lines, and on lines with high levels of traffic.
The final stage of reconstruction of the rail mill at EVRAZ ZSMK is about to be completed. The capacity of the rolling mill will increase to 950,000 mt of rails per year. The total investment in the project is $520 million.
Meanwhile, the ongoing $60 million reconstruction project of the rail mill at EVRAZ NTMK will increase its rail output to 550,000 mt per year.