Turkish iron and steel producer Kardemir has won a tender to make 10,000 tonnes of track for a new Turkish fast train project, and also plans to double its liquid raw iron output by 2008, it said on Thursday.
On Tuesday, Kardemir opened a 400,000 tonne capacity rolling mill, which it says will make it the only company in Turkey and the region that can produce rails of up to 72 metres in length. It won the tender for 10,000 tonnes of track in June, and further tenders to extend fast-growing Turkey's rail system are expected to follow.
"The government considers these railroad projects important and is broadening the projects. There's quite a need for rails. Kardemir, just like any other firm, will join tenders and hopefully will win them," Kardemir General Manager Osman Kilavuz told Reuters.
Kardemir shares have risen about 50 percent so far this year, giving it a market capitalisation of around $510 million. "We plan on beginning production (for the tracks included in the tender) in 15 days' time," he said. He did not give revenue targets for 2007, but said sales would be higher than last year's 701.7 million lira ($541.4 million).
Comments
Comments are closed for this article.