VKM STEEL EXPANDS PRODUCTION WITH SUPPORT FROM THE MINISTRY OF INDUSTRY AND TRADE OF RUSSIA
The project to expand the production of medium and small railcar castings to 5.7 thousand tons per year at the VKM Steel plant has been approved by the Ministry of Industry and Trade of Russia. This was reported on the official website of the RM Rail company.
The company was the first in Mordovia to implement a new format of business support – a special investment contract (SPIC 1.0). It provides for preferential taxation on condition of investment in development projects. In addition, this is the first SPIC in railway engineering. VKM Steel will invest more than 800 million rubles in expanding its foundry capacity, which will create more than 120 new jobs.
As part of the project, a precision casting shop will be created, the equipment of foundry shop No. 1 will be modernized, and a modern technology for the production of medium and small castings using an automatic flaskless line will be mastered. Components for freight cars, castings for sea containers and railway construction will be manufactured here.
The launch of production is planned for the second quarter of this year. Thanks to the SPIC 1.0 format, the company will be able to invest in the next stage of development of foundry capacities. This will allow for the creation of about 100 additional jobs.