Evraz Group is planning to invest ?500m in upgrading their rail production facilities in 2008-2011, the spokesperson for Evraz Group said to UrBC referring to the company’s BOD Chairman and CEO Alexander Frolov.

This means that Novokuznetsk Iron & Steel Works and Nizhniy Tagil Iron & Steel Works will be producing 750,000 tons and 950,000 tons of rails respectively by 2011.

Nizhniy Tagil Iron & Steel Works will also be improving its railroad wheel production, on which Evraz Group is to spend ?107m.

As it happens, the company does not consider one-year rail production contracts profitable because of the rising steel prices, so Evraz Group will be trying to negotiate with Russian Railways Public Company for a long-term pricing policy.