British Steel’s future in Scunthorpe has been handed a major boost after clinching a £500m supply deal with Network Rail.
The five-year contract will see the firm deliver up to 80,000 tonnes of rail a year from its Scunthorpe works – safeguarding thousands of jobs and locking in its role as the UK’s principal rail supplier.
The deal can be extended for another three years and comes just months after the Government stepped in to save the blast furnaces from closure.
British Steel commercial director for rail Craig Harvey said: “This is a ringing endorsement of UK workers and British industry. It shows the vital role we play in keeping Britain’s railways moving safely and efficiently.”
The contract will see Scunthorpe workers manufacture rails for maintenance and renewal projects across the country.
Transport Secretary Heidi Alexander called the deal “a landmark contract that truly transforms the outlook for British Steel and its dedicated workforce in Scunthorpe”.
She added: “We’ve now helped secure their long-term future by backing British Steel with meaningful government contracts, protecting thousands of skilled manufacturing jobs.”
Business Secretary Jonathan Reynolds said the deal was “a vote of confidence in the UK’s expertise in steelmaking” and would help support future infrastructure.
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