Return to overview

voestalpine to build Turnout Production in Turkey

5 May 2010 | 

The VAE Group, a Group of companies within the listed voestalpine Group, has made an important move to participate in the booming railway market in Turkey even better than before.

  • New production for high speed turnouts and modernisation of existing rail tracks.
  • Important expansion in the booming railway market in Turkey.
  • Plant will be a joint venture of voestalpine, Turkish State Railways and Turkish steel producer Kardemir.
  • 140 jobs will be created in first stage of expansion.

The VAE Group, a Group of companies within the listed voestalpine Group, has made an important move to participate in the booming railway market in Turkey even better than before. Yesterday an agreement was signed in Turkey for the establishment of a new turnout production, with the attendance of Turkish Minister of Transport and Communication Binali Yildirim. The new plant is a joint venture of Turkish State Railways (TCDD), Turkish integrated long steel producer Karabuk Demir Celik Sanayi ve Ticaret A.S (Kardemir), and VAE Group. The new factory will be built close to the existing turnout plant of TCDD in Cankiri province in central Turkey. The new production will manufacture high speed turnouts and switches for the modernisation of existing rail tracks.

Turkish State Railways wants to make use of advanced technology for expanding its rail network to cope with the rapidly increasing demand for transportation as the economy of the country is growing fast. The initial investment for the turnout production is EUR 10 million. In this first stage of expansion already 140 people will be employed. voestalpine will have a 51 percent share in the joint venture and will bring in the technological know how. Turkish rail producer Kardemir will have a share of 34 percent and Turkish State Railways 15 percent.

With this expansion voestalpine is well positioned to participate in the booming railway market in Turkey even better than before.

The VAE Group

The VAE Group is a company of the voestalpine Group. This company is the global market leader in the manufacture of switches and turnout systems. The Group now operates 40 plants in 19 countries on all five continents. Annual sales amount to approximately EUR 650 million, comprising the manufacture of switches and HYTRONICS, i.e. operating, monitoring and safety equipment for railway systems. Globally, more than 4,800 people are employed by the VAE Group.

voestalpine Group

voestalpine is a globally active group with a number of specialized and flexible companies that produce, process and further develop high-quality steel products. The Group is represented by 360 production and sales companies in more than 60 countries. With its highest quality flat steel products, voestalpine is one of Europe's leading partners to the automotive, white goods and energy industries. Furthermore, voestalpine is the world market leader in turnout technology, tool steel and special sections, as well as number one in Europe in the production of rails. The voestalpine Group generated revenues of EUR 8.55 billion in the business year 2009/10 and employs around 41,000 staff throughout the world.