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Wednesday 30 Aug 2006

MULTI-MILLION POUND CONTRACT FOR CORUS MEANS NEW INVESTMENT IN SCUNTHORPE

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National

Network Rail has awarded a £23 million, six year contract to Corus to weld up to 100,000 tonnes of high quality new rail each year.  The rail will be welded at a new centre, which is being built alongside a state-of-the-art rail service centre at Corus’ site in Scunthorpe.  Deputy Chief Executive Iain Coucher said: “Network Rail’s task is to build even further on the progress we have already made, transforming Britain’s railway into one that is world-class.  The award of these contracts will play an important part in delivering smoother journeys and a more reliable rail network for passengers and freight services.” The new centre is a key part of the continuous welded rail production process which will open in Scunthorpe in 2007.  The rail welding contract follows a seven year supply contract worth between £40 million and £50 million in the first year, which was awarded to Corus at the end of last year and demonstrates Network Rail’s commitment to long-term plain-line renewals work. The rail from the depot once welded using specialist machines will be transported using specially-adapted trains which will carry the long lengths of rail to work sites across the country. The contracts have tough quality targets with long warranty periods– the emphasis is very much on a high quality product at a competitive price.