28
December
2024
2024
The VKM-Steel production expansion project receives support from Russia's Ministry of Industry and Trade
The company is the first in the region to get support in the new format – a special investment contract
Russia's Ministry of Industry and Trade has approved VKM-Steel's project to expand production of medium and small car casting.
The company was the first in the region to implement a new business support format – a special investment contract (SPIC 1.0), providing tax benefits subject to investment in development projects. Moreover, this is the first SPIC in the railway engineering industry.
VKM-Steel is going to invest over 900 million rubles to expand its foundry power to increase medium and small car casting output by 5,700 tons and create over 120 new jobs. The project includes establishing a precision casting shop, upgrading the equipment of foundry shop No. 1, and implementing advanced technology for medium and small casting production using an automated flaskless line. The product range includes components for freight cars, including parts for the innovative bogie for increased axle load cars and castings for maritime containers and railway construction.
Currently, the equipment is being installed with approximately 80% completion. Production launch is scheduled for Q2 2025.
SPIC 1.0 is to enable the company to invest in the next phase of foundry power development and, therefore, create around 100 new jobs.
Artyom Zdunov, Head of the Republic of Mordovia:
"All the products support import substitution in the railway sector. For the republic, this means new investments and well-paid jobs. I extend my gratitude to the Ministry of Industry and Trade for supporting Mordovia's projects."
Maksim Tevs, CEO of RM Rail:
"Governmental support to business initiatives is crucial for successful economic and industrial development. Given the challenging external economic conditions, import substitution projects are vital for development of the domestic industry and enhancement of national transport security.
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The company was the first in the region to implement a new business support format – a special investment contract (SPIC 1.0), providing tax benefits subject to investment in development projects. Moreover, this is the first SPIC in the railway engineering industry.
VKM-Steel is going to invest over 900 million rubles to expand its foundry power to increase medium and small car casting output by 5,700 tons and create over 120 new jobs. The project includes establishing a precision casting shop, upgrading the equipment of foundry shop No. 1, and implementing advanced technology for medium and small casting production using an automated flaskless line. The product range includes components for freight cars, including parts for the innovative bogie for increased axle load cars and castings for maritime containers and railway construction.
Currently, the equipment is being installed with approximately 80% completion. Production launch is scheduled for Q2 2025.
SPIC 1.0 is to enable the company to invest in the next phase of foundry power development and, therefore, create around 100 new jobs.
Artyom Zdunov, Head of the Republic of Mordovia:
"All the products support import substitution in the railway sector. For the republic, this means new investments and well-paid jobs. I extend my gratitude to the Ministry of Industry and Trade for supporting Mordovia's projects."
Maksim Tevs, CEO of RM Rail:
"Governmental support to business initiatives is crucial for successful economic and industrial development. Given the challenging external economic conditions, import substitution projects are vital for development of the domestic industry and enhancement of national transport security.