EVRAZ has entered a long-term agreement to supply 3.2 million tonnes of rail products valuing nearly RUR111.7bn ($1.98bn) to Russian Railways (RZD).
The agreement includes a formula-based pricing arrangement and is set to be valid for a period of five years.
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EVRAZ Sales and Logistics vice-president Ilya Shirokobrod said: “The contract specifies the volume of deliveries and the rail categories’ mix for each year, which allows both parties to plan their work more precisely.
“In addition, there is an option to redistribute the volume or rail categories, which will help our partner to flexibly manage the portfolio of orders depending on the needs.”
EVRAZ noted that both companies will continue to work together to develop new products and improve the efficiency of railway lines’ maintenance as part of the deal.
EVRAZ will also continue to deliver rails of all categories as required by RZD under the agreement.
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By GlobalDataThe products include rails for high-speed mixed traffic, low-temperature resistant rails, rails with higher wear resistance and switch point rails.
The agreement also requires EVRAZ to gradually increase the rate of supply of 100m rails to 360,000t by 2020.
EVRAZ previously shipped 1,650t of the 54 Е1 European profile rails to Greece. The rails will be used to expand the Athens Metro to the port city of Piraeus.
Athens Metro representatives and Greek contractor J&P Avax audited the production on site and were stated to have been satisfied with the inspection before agreeing to the deal.
EVRAZ was responsible for production and logistics under the project.
