British Steel, the UK’s only manufacturer of rail, has secured a new £500-million long-term supply contract with Network Rail.
The five-year agreement – with an option to extend for a further three years – means British Steel retains its position as the principal supplier to the organisation which operates and maintains Britain’s rail infrastructure.
All the rails will be manufactured at British Steel’s Scunthorpe steelworks where most of the track laid in the UK is made.
The company will deliver between 70,000 and 80,000 tonnes of rail a year – enough to stretch between London and Edinburgh.
British Steel’s Commercial Director for Rail, Craig Harvey, said: “We are exceptionally proud to be extending our long-term
strategic partnership with Network Rail with an agreement demonstrating British Steel’s importance to the UK’s economy and infrastructure.
“The contract is a ringing endorsement of 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.”
Employees at British Steel’s site in Scunthorpe have been supplying Network Rail with track for more than 20 years, and in the last decade alone they have manufactured more than one million tonnes of rail for the UK’s network operator.
The rails in the new agreement will largely be used for maintenance and renewals and build on the UK’s reputation as having the
safest railway in Europe. Among the products to be supplied are two long-life rail innovations, HP335 and Zinoco – both of which reduce the need for maintenance and replacement works.
Transport Secretary Heidi Alexander said: “This landmark contract truly transforms the outlook for British Steel and its dedicated workforce in Scunthorpe, building on its decades-long partnership with Network Rail to produce rail for Britain’s railways.
“After taking urgent action to step in and save these historic blast furnaces from closure, we’ve now helped secure their long-term future by backing British Steel with meaningful Government contracts, protecting thousands of skilled manufacturing jobs in the process.
The news comes following Rachel Reeves's announcement of the Spending Review
last week, where she stated that upcoming infrastructure projects should be made using UK-made steel.
Millions of tonnes of steel will be needed for the Infrastructure Strategy investments in new nuclear capacity, regional transport, schools and prisons.
The detailed outline of developments, to the tune of billions of pounds, has been welcomed by the steel industry, with a £14.2 billion investment announced for Sizewell C alone.
A new Infrastructure Pipeline, to be published before recess, provides steelmakers with an opportunity to identify project opportunities and demonstrate their capacity and capability to supply to public procurement needs.
However, according to UK Steel, ongoing market confidence for steel companies will be cemented with truly competitive electricity prices, strategic
domestic public procurement and reinforced trade defences.
UK Steel Director-General, Gareth Stace, said:“Where public money is involved, British contracts should buy from British steel firms, boosting thousands of jobs and supply chains across the United Kingdom. The Infrastructure Strategy and forthcoming pipeline means the steel industry can take full advantage of these opportunities.
“UK steelmakers are holding up their end of the bargain, working closely with the Government on reforms to the Policy Procurement Note for Steel and a digital steel catalogue to ensure procurement teams know what steel we make and where.
“To secure the success of our steel companies and the Government’s ambitions, the infrastructure plans must go hand-in-hand with competitive electricity prices, strategic domestic procurement and a new trade defence mechanism in 2026 to handle the influx of imported, high-emission steel.”