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France,United Kingdom : SNCF NETWORK signed a contract with BRITISH RAIL to buy 120,000 tonnes of rail
Publish Date : 20-Jun-2016
SNCF Network has signed a deal to procure 120,000 tonnes of rail from British Steel.
The companys new CEO MR Patrick Jeantet on Tuesday has made a trip to the Hayange rail mill of British Steel located in northeastern French region to sign the rail supply contract for his organization.
The French infrastructure manager has signed up Jeantet as its Chief recently.
The newly placed rail supply order forms a component of a five-year framework contract granted in October 2015. At that time SNCF Network had also sealed such deals with Voestalpine, Arcelor Mittal, and Lucchini.
Tata Steel had also made 35m investments in the rail mill at Hayange, which facilitated the facility to manufacture 108m-long rails and boosted the overall capacity for production of rail to 400,000 tonnes from 300,000.
Tata Steel had invested the money before the companys sale of its Long Products business in Europe to Greybull Capital in recent times.
Among others, establishment of a new 12m heat treatment plant that more than doubled the capacity for heat-treated rails to 125,000 tonnes from 55,000 tonnes earlier was part of the modernization project.
The newly settled contract with SNCF Network accounts for about 30% of the overall order book of the facility.
Jeantet revealed, "This contract supports the steel industry in France and reflects the will of SNCF Network to develop long-term partnerships with its suppliers.
The official added, The signing of this contract enables SNCF to achieve economies of scale while increasing production capacity to cope with the unprecedented workload generated by the renovation of the conventional network."
