British Steel has won a 拢500m contract to supply rail tracks to Network Rail, securing jobs and safeguarding Scunthorpe鈥檚 blast furnaces. This five-year deal highlights the UK government鈥檚 efforts to protect domestic steelmaking amid national security concerns, industry uncertainties, and international trade pressures, while supporting infrastructure development and economic resilience.
British Steel has secured a major five-year contract valued at 拢500 million to supply railway tracks to Network Rail, providing a vital boost to the Scunthorpe steelworks and helping secure thousands of jobs. The agreement will see British Steel produce over 337,000 tonnes of rail, further cementing its long-standing role in supporting the UK鈥檚 rail infrastructure. This deal comes just two months after the UK government intervened using emergency powers to prevent the shutdown of Scunthorpe鈥檚 blast furnaces.
The government鈥檚 intervention followed concerns that Jingye, the Chinese company that acquired British Steel in 2020, intended to close the blast furnaces. British Steel described the new deal as a strong affirmation of confidence in British workers and the country鈥檚 industrial capabilities. Scunthorpe has been manufacturing rail since 1865, and this contract guarantees continued production at the site through at least 2030.
The new agreement, beginning July 1, ensures British Steel will continue supplying around 80% of Network Rail鈥檚 track requirements. The remainder will be fulfilled by European steelmakers producing specialist rail products. Network Rail鈥檚 director of railway business services, Clive Berrington, emphasized the company鈥檚 commitment to purchasing British products when economically viable, noting British Steel remains highly competitive and will continue as its main supplier.
Craig Harvey, British Steel鈥檚 commercial director for rail, highlighted that the agreement underlines the company鈥檚 strategic value to the UK鈥檚 infrastructure and economy. Although the government took temporary control of British Steel in April, it has not fully nationalized the firm. Officials are still weighing long-term options, including attracting private investment, with national security concerns surrounding the loss of domestic steel production capacity.
The Scunthorpe plant, which employs around 2,700 workers, is the UK鈥檚 sole remaining site producing virgin steel. It operates four blast furnaces named after historical English queens鈥擝ess, Mary, Anne, and Victoria鈥攚ith only Bess and Anne currently functional. If the blast furnaces are shut down and allowed to cool, restarting them would be prohibitively expensive and difficult, effectively ending the UK鈥檚 ability to produce virgin steel鈥攁 critical component for major infrastructure projects.
This deal also aligns with the government鈥檚 broader efforts to strengthen domestic manufacturing and supply chains as part of its upcoming national infrastructure strategy. The announcement follows years of uncertainty in the UK鈥檚 steel industry, including the closure of Port Talbot鈥檚 blast furnaces in 2024 and ongoing pressures from international trade measures. Although the UK temporarily avoided increased U.S. steel tariffs under President Trump鈥檚 executive orders, the final deal did not include the expected removal of import charges.
