10
January
2025
2025
Head of Mordovia reviews the progress of VKM-Steel's casting production expansion project
Russia's Ministry of Industry and Trade has approved implementation of a the first special investment Contract (SPIC 1.0) project in Russian ferrous metallurgy
Artem Zdunov, Head of the Republic of Mordovia, reviewed the progress of the project for increasing medium and small casting production at VKM-Steel, being a part of RM Rail. During his visit to the company, the regional leader discussed key project stages and future business development with Maksim Tevs, CEO of RM Rail.
VKM-Steel is the first in both the region and the Russian ferrous metallurgy sector to receive the Ministry's approval for implementing a special investment contract (SPIC 1.0) project, which offers tax benefits for strategic development investments.
Under the trilateral agreement between Russia's Ministry of Industry and Trade, Mordovia Republic, and RM Rail, VKM-Steel is to invest over 900 million rubles in expanding its production capacities, increasing medium and small casting output by 6,000 tons annually and creating over 120 initial jobs, with 100 more to follow.
The first project phase includes establishing a precision casting facility with cutting-edge technology for producing high-precision steel grade and iron products. The planned range includes freight car components, including parts of the innovative bogie for increased axle load cars. Most equipment has been already purchased and installed, including induction melting furnaces and shot blasting drums for steel and iron castings, with commissioning in full swing. The current project completion status is about 80%.
The new production launch is planned for Q2 2025; reaching the design capacity will enable VKM-Steel to diversify its products and improve its competitiveness and reduce Russia's overall foundry product shortage.
The Ministry's Interdepartmental Commission on Special Investment Contracts (SPIC) highly appreciated VKM-Steel's project in terms of domestic industry advancement and enhancement of transport sector security.
Maksim Tevs, CEO of RM Rail:
"Expanding medium and small car casting production is a strategic milestone in our company's growth and its market position strengthening. While this has been a long journey, reaching the final stage proved challenging due to various technology- and economy-related factors. And we do value the support received from Mordovia's authorities and the Industrial Development Fund throughout this challenging process. Producing strategically important import substitution products and creating well-paid jobs benefits both the government and business."
All news
VKM-Steel is the first in both the region and the Russian ferrous metallurgy sector to receive the Ministry's approval for implementing a special investment contract (SPIC 1.0) project, which offers tax benefits for strategic development investments.
Under the trilateral agreement between Russia's Ministry of Industry and Trade, Mordovia Republic, and RM Rail, VKM-Steel is to invest over 900 million rubles in expanding its production capacities, increasing medium and small casting output by 6,000 tons annually and creating over 120 initial jobs, with 100 more to follow.
The first project phase includes establishing a precision casting facility with cutting-edge technology for producing high-precision steel grade and iron products. The planned range includes freight car components, including parts of the innovative bogie for increased axle load cars. Most equipment has been already purchased and installed, including induction melting furnaces and shot blasting drums for steel and iron castings, with commissioning in full swing. The current project completion status is about 80%.
The new production launch is planned for Q2 2025; reaching the design capacity will enable VKM-Steel to diversify its products and improve its competitiveness and reduce Russia's overall foundry product shortage.
The Ministry's Interdepartmental Commission on Special Investment Contracts (SPIC) highly appreciated VKM-Steel's project in terms of domestic industry advancement and enhancement of transport sector security.
Maksim Tevs, CEO of RM Rail:
"Expanding medium and small car casting production is a strategic milestone in our company's growth and its market position strengthening. While this has been a long journey, reaching the final stage proved challenging due to various technology- and economy-related factors. And we do value the support received from Mordovia's authorities and the Industrial Development Fund throughout this challenging process. Producing strategically important import substitution products and creating well-paid jobs benefits both the government and business."