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Corus Invests in French Steel Mill

12/16/2009 - Corus will invest €35 million at its rail production facility in Hayange, France, after securing a contract worth about €350 million to supply rails to French railway operator SNCF for the renewal and maintenance of the RFF (Réseau Ferré de France) tracks.

Corus will invest €35 million at its rail production facility in Hayange, France, after securing a contract worth about €350 million to supply rails to French railway operator SNCF for the renewal and maintenance of the RFF (Réseau Ferré de France) tracks.
 
The contract is for an initial four years with the option to extend it by two years.
 
Corus will invest in a range of new manufacturing equipment that will improve the plant’s efficiency and enable workers to produce 108-meter-long rails.
 
“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,” said Gérard Glas, Director General of Corus Rail (France). “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,” Glas added.
 
Engineering studies have already been completed at the Hayange plant and work is expected to begin in 2010. At the peak of the enhancement work, up to 400 contractors are expected to be working on the upgrade—from design and mechanical engineers to electricians and demolition experts.
 
“This is the largest and most significant investment in the Hayange site for more than a decade and is excellent news for our workers, their families, and the whole community,” said Colin McGibbon, Hayange Plant Manager. “The investment will make us more competitive and help secure the future of the plant—and the workforce—for years to come.”
 
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 is expected to improve yield and quality at the plant, as well as boost production capacity from 300,000 to 340,000 tonnes per year.