On December 15, the UK-based steelmaker Corus, the European subsidiary of the Indian steel giant Tata Steel, announced that it will invest €35 million at its rail production facility in Hayange, France, after securing a major new contract with French railway operator French National Railway Company (SNCF).
The investment follows the confirmation that Corus has secured a contract worth about €350 million to supply rails for up to six years to SNCF for the renewal and maintenance of railway tracks for RFF (Réseau Ferré de France). The contract is for an initial four years with the option to extend it by a further two years.
Corus will invest the €35 million in new technology at its rail production facility in Hayange, in the Lorraine region of northeast France, to allow it to produce longer rails. The investment in a range of new manufacturing equipment will improve the plant's efficiency and enable workers to produce 108 meter-long rails.
Gérard Glas, director general of Corus Rail, France, said, "Being able to produce 108 meter-long rails opens up new opportunities for us and puts us in a better position to supply the growing demand for high-speed rail lines. By 2011 we will be among just a handful of producers with this world-class capability. This significant contract with SNCF also gives us the confidence to invest in our Hayange plant."
The Hayange mill, which employs 440 people, currently supplies rails of varying lengths to railway operators around the world, but predominantly in Europe. The mill can currently produce rails of up to 80 meters in length. The investment will improve yield and quality at the plant, as well as boosting production capacity from 300,000 to 340,000 metric tons per year.