British Steel has signed a £500m contract to manufacture new rails for the UK’s train network.
The five-year agreement with Network Rail is a boon to the struggling steelmaker, whose Chinese owners effectively abandoned it earlier this year.
British Steel will retain its position as principal supplier to Network Rail and will provide just over 80% of its steel needs. From July, the remaining portion will be sold to Britain by two Austrian and German companies, Voestalpine and Saarstahl.
All the rails will be manufactured at the 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: “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...