On August 22, VADEMSAS, a joint venture company established by Austria-headquartered steelmaker Voestalpine, Turkish integrated long steel producer Karabuk Demir Celik Sanayi ve Ticaret A.S (Kardemir) and Turkish State Railways (TCDD) held a groundbreaking ceremony for the construction of a new factory to manufacture high speed railway switches, with the attendance of Turkish Minister of Transport and Communication Binali Yildirim. The construction of the factory is scheduled to be completed within two years.
As SteelOrbis previously reported, the new factory will be built close to the existing railway switch plant of TCDD in Cankiri province in central Turkey, on leased land of 21,500 m2. Voestalpine will have a 51 percent share in the project, while Kardemir will control a share of 34 percent, with TCDD holding 15 percent. Voestalpine and Kardemir will provide the necessary technology and conduct the implementation of the investments.
With an initial capital of €5 million the project will employ 144 people, while there will be an additional investment of €7.9 million in the first two years of its operation.
The factory will produce 500 railway switches per year for heavy transportation and 100 railway switches per year for high speed transportation and will reach its nominal capacity within three years after its commissioning. Approximately 10 percent of the production will be exported.
The project aims to fulfill the railway switch needs of Turkey, which are expected to reach $150 million in value in a period of ten years on the back of ongoing and planned high speed railway construction work in the country.