Thousands of British manufacturing jobs have been secured following the announcement of a major five-year rail supply deal between Network Rail and British Steel, valued at GBP 500 million (EUR 586 million).
Transport Secretary Heidi Alexander confirmed the contract during a visit to British Steel’s Scunthorpe plant, just two months after the Government took emergency legislative action to prevent the closure of the site’s blast furnaces. The agreement represents the first major public procurement contract following April’s intervention and marks a significant boost for UK industry.
Under the deal, British Steel will supply a minimum of 337,000 tonnes of rail over five years, meeting around 80% of Network Rail’s domestic rail requirements. The contract also supports the Government’s “Plan for Change” by strengthening national supply chains and driving economic growth through infrastructure investment.
“This landmark contract truly transforms the outlook for British Steel and its dedicated workforce in Scunthorpe,” said Transport Secretary Heidi Alexander. “After taking urgent action to save these historic blast furnaces from closure, we’ve now helped secure their long-term future by backing British Steel with meaningful Government contracts. This protects thousands of skilled manufacturing jobs and ensures our railways are supported by British-made steel.”
Network Rail and British Steel
The new contract builds on a longstanding partnership between Network Rail and British Steel. The Scunthorpe facility has been supplying rail to Britain’s network since 1865. Today’s announcement ensures that legacy continues as part of a renewed focus on domestic manufacturing.
Business Secretary Jonathan Reynolds welcomed the news, calling it “a vote of confidence in the UK’s expertise in steelmaking.” He added: “Following our decisive action to step in and save steelmaking at Scunthorpe in April, this contract will give the sector the security to supply the steel we need for the infrastructure of the future.”
In April, the Government passed emergency legislation in response to British Steel’s owner, Jingye Group, announcing plans to shut down blast furnaces at the Scunthorpe site. The move threatened thousands of jobs and the continuity of vital steelmaking capacity in the UK. The swift intervention led to the preservation of operations and set the stage for this new long-term contract.
The agreement is part of a broader GBP 2.5 billion UK Steel Investment Fund, designed to revitalise domestic steel production. In addition to British Steel’s share, other European suppliers will provide between 80,000 and 90,000 tonnes of specialist rail products to ensure continuity and flexibility in supply.
Network Rail’s Group Director for Railway Business Services, Clive Berrington, who joined the Transport Secretary at the signing ceremony, said: “We are committed to buying British where it makes economic sense to do so, and British Steel remain extremely competitive in the provision of rail. They will remain our main supplier in the years ahead.”
“This agreement demonstrates British Steel’s importance to the UK’s economy and infrastructure. The contract represents a huge vote of confidence in UK workers and British industry, underpinning the vital role we play in ensuring millions of passengers and freight operators enjoy safe, enjoyable, and timely journeys on Britain’s railways,” British Steel’s Commercial Director for Rail, Craig Harvey, said.
The announcement follows the UK’s recent success in securing a new trade agreement with the United States that is expected to lower tariffs and protect jobs across key industries, including steel. The UK remains the only country to have struck such a deal with the US to date.
Share on:
