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Tata Steel bags two-year contract from French rail operator SNCF

09 Jan 2014 Evaluate

Tata Steel has won a two-year contract to supply more than 200,000 tonnes of track to French rail operator SNCF. The contract will see Tata Steel supply the majority of SNCF’s rail requirements in lengths of up to 108m from its plant in Hayange, Northern France. The Hayange rolling mill is supplied with steel from Tata Steel’s Scunthorpe steelworks in the UK.

The order was secured following a €35 million investment by Tata Steel in 2011, which allowed the Hayange mill to produce 108m lengths of rail that SNCF will use throughout France’s standard and high-speed networks. The new order is an extension of a previous contract with SNCF.

Further, the news comes just weeks after unveiling of the new €12 million heat-treatment facility at the Hayange plant, built as part of Tata Steel’s customer-focused approach to the market. Heat-treated rail can last up to three times longer than standard rail when used in high-wear conditions such as heavy traffic, high axle loads or tight curves. The newly opened facility will allow Tata Steel to more than double its annual output of heat-treated rail from 55,000 to 125,000 tonnes.

Tata Steel Share Price

214.45 -2.60 (-1.20%)
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