Turkish State Railways (TCDD), Turkish integrated long steel producer Karabuk Demir Celik Sanayi ve Ticaret A.S (Kardemir), and Austria-headquartered steelmaker Voestalpine signed an agreement today, May 4, for the establishment of a new factory to manufacture high speed railway switches, with the attendance of Turkish Minister of Transport and Communication Binali Yildirim.
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 and TCDD 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 140 people, while there will be an additional investment of €10 million in the first 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. 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 constructions in the country.