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EVRAZ to Upgrade Pueblo Rail Operations

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EVRAZ to Upgrade Pueblo Rail Operations

21 December 2011 – EVRAZ plc (LSE: EVR) and Evraz Group S.A. (LSE: EVRZ) (jointly referred to as “EVRAZ”) today announced plans to upgrade its Pueblo, Colo. (United States) rail facility. The upgrades are primarily focused on product quality and operational improvements and are also intended to expand head hardened rail manufacturing capacity.

“As North American rail companies continually expand their networks, our customers are looking for world class head hardened rail to enable more tonnage to travel over their lines at a lower total cost,” said Pavel Tatyanin, Senior Vice President, Head of International Business, EVRAZ. “Our Pueblo facility is ideally suited to help fill this need, both in terms of its geographic location as well as the manufacturing expertise of our local team.”

The investment is scheduled to be complete by the first quarter of 2013 and will increase the mill’s total capacity by 10%, to almost 525,000 metric tonnes of premium rail annually. Improvements will be made in head hardening, quality, and straightness and the facility’s labs will be upgraded to increase the rate of product development. EVRAZ will continue to supply steel for the rail facility from its adjacent steel mill, which recently received a permit to expand production capacity.

“Embarking on this investment in our rail operations would not be possible without the recent approval by the state of Colorado of our revised air permit,” stated Mike Rehwinkel, President and CEO of EVRAZ North America. “This rigorous process has shown that we can produce world-class steel here in Colorado while being protective of the environment.”

EVRAZ Pueblo manufactures a comprehensive line of long products including head hardened rail, standard rail, premium rod and high quality coiled bar. EVRAZ Pueblo also produces seamless tube to support the expanding oil and gas sectors. 

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For further information:

Media contact:
Oleg Kuzmin
VP, Corporate Communications
London: +44 207 832 8990 Moscow: +7 495 937 6871
media@evraz.com

Investor contact:
Alexander Boreyko
Director, Investor Relations
London: +44 207 832 8990 Moscow: +7 495 937 6871
ir@evraz.com