Corus, a subsidiary of Tata Steel, has decided to invest 35 million pounds at its rail production facility in France.The move has come after the Europe's second largest steel maker secured contract worth 350 million pounds from the French railway operator SNCF.
The contract with SNCF will let Corus supply rails for up to six years. The contract is for an intial four years with the option to extend it further by two years.
Corus will invest the money in new technology at its rail production in Hayange (north-east France) to allow it to produce longer rails.
"Being able to produce 108 meter long rails opens up new opportunities for us and puts us in a better position to supply the growing demand for high-speed rail lines," said Gerard Glas, director general of Corus Rail (France).
Corus has its main steelmaking operations in the UK and the Netherlands. It supplies steel to the construction, automotive, packaging, mechanical engineering and other markets worldwide.
On the Bombay Stock Exchange, shares of Tata Steel traded last on Tuesday at Rs 545.90, up 0.23%.