Tribune Chronicle reported that the board of control has approved a reimbursement agreement with V&M Star for railroad work being done on its construction site.

Mr David Bozanich finance director said that V&M will forward a little more than USD 2 million to the city that will, in turn, be funneled to Norfolk Southern for improvements to rail lines near the site of the company's new pipe mill on the Girard Youngstown border.

In turn, Norfolk Southern will receive the same amount through a federal grant, which will then be forwarded to the city and back to V&M.

The deputy director of public works said this money is being used to realign existing rails at the site. It is part of an overall USD 17 million to USD 18 million of work being done on rail improvements at the site for the new mill.

V&M is well along on construction of a USD 650 million pipe mill that's expected to employ about 1,200 construction workers early next year, then about 350 full time employees to make high grade pipe for drillers.

Sister company VAM USA LLC announced earlier this month the renovation of a long closed Youngstown Sheet & Tube building next to the new pipe plant to thread premium connections on to pipe to withstand intense pressures of drilling deep, horizontal wells.
Still on the table is a melt shop that was held back when V&M announced the pipe mill in February 2010, but company officials have declined to give any specifics.

Part of the rail project was pushed back two months because of unexpected delays over obtaining rights of way to different parts of the property where there are rail lines, but Mr Shasho said a recent extension was approved for the project that does not add to its cost.

He added that "It was just a matter of procedure that had to be taken care of that took more time than we thought."

(Sourced from tribtoday.com)