Italian railway company Rete Ferroviaria Italiana (RFI) has awarded a large order of over 200,000 tonnes of rail to five steelmakers in Europe, Kallanish learns from RFI.
The order with a total value of €1.1 billion ($1 billion) will be divided into two phases. The first phase has a total value of €946 million and includes the allocation of five lots. Lot no.1, a supply batch worth over €236m, will be awarded to JSW Steel Italy in Piombino. The €208m lot no.2 has been awarded to ArcelorMittal Poland. Voestalpine Rail Technology has won lot no.3 with a €189m value. Saarstahl Rail was awarded the €170m lot no.4, while ArcelorMittal Spain has bagged lot no. 5 for €142m.
The second phase of the supply has been awarded to JSW Steel Italy for over €153m.
The rails will go into new infrastructure projects and maintenance supported by the European recovery fund, Piano Nazionale di Ripresa e Resilienza (PNRR). The order will satisfy RFI’s need for 43,000 rails of approximately 108 metres per year, the company reveals in a note.
According to JSW’s financial-year 2022 report, the steelmaker’s Italian division sold over 315,000t of re-rolled products including bars, wire rod and rails. It reported €309m revenue, Kallanish notes.
Natalia Capra France