Corus to invest e35 m in French rail unit

MUMBAI: Tata Steel, the world’s eighth-largest steelmaker by output, said on Tuesday its European unit Corus would invest e35 million (approximately Rs 239 crore) at its rail production facility in Hayange in France. The investment in a range of new manufacturing equipment would improve the plant’s efficiency and enable workers to produce 108-metre long rails, said the company.

Corus has secured a contract worth about e350 million (Rs 2,393 crore) to supply rails for up to six years to French railway operator SNCF for the renewal and maintenance of the tracks. The contract is for an initial four years with the option to extend it by a further two years, Tata Steel said in a statement.

Gérard Glas, director general of Corus Rail (France), said: “Being able to produce 108 m 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,” he added.
The Hayange mill employs 440 people. It supplies rails to railway operators around the world, predominantly in Europe. The proposed investment will boost production capacity from 300,000 to 340,000 tonne per year.