British Steel has secured a £500m five-year deal to supply train tracks for Network Rail, boosting the UK steel industry future. This agreement could help protect jobs at the Scunthorpe steelworks, which faced closure threats earlier this year.
The government intervened in April using emergency powers to prevent Chinese owner Jingye from shutting down blast furnaces. Now, the new contract ensures Scunthorpe will produce over 337,000 tonnes of rail, supporting thousands of jobs.
British Steel called the deal a “huge vote of confidence” in UK workers. Scunthorpe has made railway tracks since 1865, but this contract guarantees work until at least 2029. Network Rail will source 80% of its tracks from British Steel, with European firms supplying specialist rails.
Clive Berrington of Network Rail said they prioritize buying British when economically viable. Craig Harvey from British Steel added that the deal highlights the company’s role in national infrastructure.
The UK took temporary control of British Steel in April but hasn’t fully nationalized it. Officials are still considering long-term solutions, including private investment. The UK steel industry future became a national security concern after Jingye planned to close blast furnaces.
If Scunthorpe’s furnaces shut, Britain would lose its ability to make virgin steel a crucial material for major projects. The plant, employing 2,700 people, is the last in the UK producing virgin steel. Only two of its four furnaces (Bess and Anne) remain active.
Transport Secretary Heidi Alexander called the contract a “transformational” moment for British Steel. The deal aligns with the government’s push to strengthen UK manufacturing. A national infrastructure strategy, due this week, may further shape the UK steel industry future.
Recent challenges, like Port Talbot’s furnace closures and US tariff threats, have pressured the sector. While the UK avoided Trump’s 50% steel tariff hike, ongoing negotiations will determine future trade terms.
For now, this £500m deal offers stability a crucial step in securing the UK steel industry future.
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