UK: Network Rail has awarded British Steel a £500m five-year deal to supply a minimum of 337 000 tonnes of rail from its Scunthorpe steelworks.
The order announced on June 17 comes after the government passed emergency legislation on April 12 to prevent British Steel’s Chinese owner, Jingye Group, from taking any steps which would shut down the UK’s only remaining blast furnaces able to produce virgin steel used for products, including rail.
‘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’, said Transport Secretary Heidi Alexander. ’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.’
The contract covers 80% of Network Rail’s needs. The infrastructure manager will also award smaller contracts for European manufacturers to supply a further 80 000-90 000 tonnes of specialist rail products.
‘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’, said Network Rail’s Group Director for Railway Business Services, Clive Berrington.
