The Russian steel producer United Metallurgical Company (
OMK) and Russian Railways (RZhD) have extended by five years until the end of 2015 the long-term contract between the companies for the supply of railway wheels.
Under the terms of the contract, within five years
OMK will produce and deliver to RZhD over 3.2 million railway wheels.
The effective term of the previous long-term contract for seven years expired on December 31, 2010. Within the framework of this contract, in 2003-2010
OMK's subsidiary Vyksa Steel Works (Vyksa) produced and shipped over four million railway wheels to RZhD.
"The seven-year perspective enabled Vyksa to upgrade its wheel
production, which allowed it to start
manufacturing wheels of a new generation, while RZhD over these years managed to significantly improve the reliability and safety of its traffic,"
OMK said.