Two months after being saved by the government, British Steel’s Scunthorpe plant is celebrating securing a five-year contract from Network Rail to supply 337,000 tonnes of long and short rail
Thousands of British Steel jobs have been secured after the firm secured a £500million deal with Network Rail.
The company, whose Scunthorpe plant was saved from closure by the government in April, has sealed a major five-year contract from Network Rail. The move will result in British Steel supplying a minimum of 337,000 tonnes of long and short rail, with the contract due to begin on July 1. It forms part of Network Rail’s plans to buy nearly 450,000 tonnes of rail for the next five years. The remaining orders for specialist rail products will, however, go to other European manufacturers, with deals expected to be announced shortly.
Labour used emergency legislation to take control of British Steel’s historic Scunthorpe plant after Chinese owner Jingye proposed closing two blast furnaces at the site in North Lincolnshire The move saved the 2,700 jobs at the plant and thousands more in the supply chain.
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.
“This crucial investment in our railway infrastructure shows we are delivering on our Plan for Change commitment to raise living standards in every part of the UK and ensure economic growth is felt by working people in our proud industrial heartlands.”
Business Secretary Jonathan Reynolds said: “This is great news for British Steel and a vote of confidence in the UK’s expertise in steelmaking, which will support thousands of skilled jobs for years to come.”
Clive Berrington, Network Rail’s Group director for railway business services, 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 and will remain our main supplier in the years ahead.”
Craig Harvey, British Steel’s commercial director for Rail, said: “We’re 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 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.”
It comes as Labour presses ahead with nationalising large swathes of Britain’s railways.
South Western Railway was recently transferred back to public control, the first of 10 by 2027 under Labour and following four under the Tories.
The government says the process, creating Great British Railways, will end nearly 30 years of what it calls fragmentation and waste under Tory privatisation.