Network Rail and British Steel Partner to Secure Rail Supply and Thousands of Jobs

Network Rail has signed a £500m ($678.8m) contract with British Steel to supply more than 337,000 tonnes of track over the next five years. The deal, effective from 1 July, is expected to safeguard thousands of jobs at British Steel's Scunthorpe plant, which has produced rail for the UK's railways since 1865.

Transport Secretary Heidi Alexander confirmed the deal during a visit to the Scunthorpe steelworks, stating that the landmark contract truly transforms the outlook for British Steel and its dedicated workforce in Scunthorpe. Network Rail's Railway Business Services group director Clive Berrington added that they are committed to buying British where it makes economic sense to do so and that British Steel remains extremely competitive in the provision of rail.

The contract with Network Rail, which will meet 80% of its rail requirements, is a component of the government's £2.5bn steel fund designed to rejuvenate UK steel production over the next five years. It also forms a part of Network Rail’s broader strategy to procure almost 450,000 tonnes of rail for the next five years. To ensure a consistent supply, Network Rail will also engage with European manufacturers for additional contracts to supply specialist rail products.

British Steel commercial director for rail Craig Harvey said that the contract represents a huge vote of confidence in UK workers and British industry, underpinning the vital role they play in ensuring millions of passengers and freight operators enjoy safe, enjoyable, and timely journeys on Britain’s railways.

In addition to this significant contract, the UK government recently announced a reduction in the minimum age required to begin train driving careers from 20 to 18, aligning the UK with other European countries and addressing staff shortages in the rail industry. This move is expected to further boost the UK's rail sector and contribute to the success of the Network Rail and British Steel partnership.