EVRAZ and Russian Railways sign a new five-year contract for the supply of rail products
EVRAZ and Russian Railways (RZD) have signed a new long-term agreement for the supply of rail products. The document comes into force on 19 February 2018 and will be valid for five years.
According to the new agreement, for five years EVRAZ will deliver to RZD 3.2 million tonnes of products worth 111.7 billion rubles*. The agreement provides for formula-based pricing.
EVRAZ will continue to supply rails of all categories demanded by Russian Railways, including special products: rails for high-speed mixed traffic, low-temperature resistant rails, rails with higher wear resistance and switch point rails. All these categories of rails in Russia are supplied only by EVRAZ. The agreement provides for a gradual increase in the supply of 100-meter rails to 360,000 tons by 2020.
"The new five-year contract with our key partner, Russian Railways, is a logical step to continue our long-term relations," said Ilya Shirokobrod, EVRAZ Vice President for Sales and Logistics. "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. Meanwhile, EVRAZ and Russian Railways will continue to work together on the development of new products and improving the efficiency of railway lines’ maintenance".
* without VAT.