Network Rail awards £500 million contract to British Steel
Huge Win for British Steel: £500m Network Rail Contract Secures Scunthorpe's Future
British Steel has scored a major victory, bagging a £500m contract with Network Rail, securing the continuity of their Scunthorpe steelworks. This deal is a game-changer, ensuring British Steel provides up to 80,000 tonnes of rail per year – roughly 80% of Network Rail's annual rail requirements.
All the rails will be manufactured at Scunthorpe, the traditional hub for UK's rail track production. Business Secretary Jonathan Reynolds cheered the decision, likening it to a confidence vote in the UK's steelmaking prowess and a guarantee for thousands of skilled jobs over the years.
Earlier this year, British Steel's Chinese owners, Jingye, held back on purchasing necessary materials to keep the Scunthorpe blast furnaces running. With government intervention in April, the business was temporarily saved, but it hasn't been fully nationalized yet.
This "landmark" contract significantly improves British Steel's prospects and the morale of its 2,700 Scunthorpe employees. The partnership, spanning more than 20 years, has seen British Steel supply Network Rail with track for over a million tonnes in the last decade alone. The contract begins on July 1 and includes an option for a three-year extension.
Commercial Director for Rail at British Steel, Craig Harvey, celebrated the agreement as a testament to the importance of UK workers and industry, ensuring swift, safe, and enjoyable journeys for millions of rail passengers and operators in Britain.
Government ministers are thrilled about the contract, viewing it as a commitment to UK industry. Transport Secretary Heidi Alexander expressed that the deal transforms British Steel's outlook and promises a bright future for the company and its workforce. She further emphasized that the government's backing through meaningful contracts helps safeguard jobs and supports domestic industry.
Overall, the £500m Network Rail contract signifies a vital breath of life for British Steel's Scunthorpe operations, thwarting potential closure and firmly establishing the plant as a cornerstone of the UK's rail infrastructure, protecting thousands of jobs in the process, while reinforcing domestic steel production capacity essential for national infrastructure projects.
[1] British Steel secures £500m Network Rail contract[2] British Steel wins multibillion-pound rail contract with Network Rail[3] British Steel wins 5-year, £500m contract with Network Rail[4] British Steel secures Network Rail contract extension[5] British Steel saves Scunthorpe blast furnaces from closure
- The British Steel industry's financial outlook has significantly improved following the £500m contract with Network Rail, as indicated by the general-news sources.
- The British Steel-Network Rail partnership, spanning over 20 years, has not only ensured the continuity of the Scunthorpe steelworks but also positively impacted the insurance sector by securing thousands of skilled jobs over the years.
- The energy and business sectors are closely monitoring the situation as British Steel continues to play a crucial role in the supply of rails for rail infrastructure projects, in line with political decisions and commitments.
- The transportation industry stands to benefit from this landmark contract as British Steel, with the support of the UK government, gears up to supply up to 80,000 tonnes of rail per year, contributing to safer and more enjoyable journeys for passengers and operators across the country.
