EVRAZ plc (LSE: EVR) and Russian Railways have signed a
Memorandum of Understanding that outlines 5-year contract
that will come into force in 2013, and will be valid
through 2017. During that time EVRAZ will supply Russian
Railways with rail products worth around 90 billion
rubles, to include rails up to 100 metres long.
EVRAZ ZSMK is completing the final stage of
reconstruction of the rail mill to launch production of
this new rail type, and as a result the capacity of the
rolling mill will increase to 950 thousand tonnes of
rails a year. The total investment of the project is 520
million US dollars.
The 100-metre head-hardened rails are a new product for
Russia and the CIS, and are comparable in quality with
the products of the world leaders in this sector. They
can be used on high-speed railway lines, and on lines
with high levels of traffic. The increased length of the
rails also allows the reduction of the number of welded
joints, which improves both safety and the maximum speed
the train can reach.
The reconstruction of the rail mill at EVRAZ NTMK
continues, with 60 million US dollars to be invested in
the project which - with automated quality control - will
allow the production of 25-metre volumetric tempered
rails with a high purity of surface. After the completion
of the project the volume of rail production at EVRAZ
NTMK will increase to 550 thousand tonnes per year.
"EVRAZ is reconstructing the rail mills in accordance
with the priorities set out in the Strategy for
Developing Rail Transport in the Russian Federation," -
Ilya Shirokobrod, EVRAZ Vice-President and Head of
Division of Railway Products said. "Our railway products'
segment has excellent prospects for growth. When the
reconstruction is over we will be able to produce rails
that meet the highest world standards and the strictest
requirements of our customers, and in particular those of
Russian Railways, one of our key clients and partners".
For further information:
Director, Investor Relations
London: +44 207 832 8990 Moscow: +7 495 232 1370
VP, Corporate Communications
London: +44 207 832 8998 Moscow: +7 495 937 6871