British Steel, the UK’s only manufacturer of rail, has secured a new £500-million long-term supply contract with Network Rail.
The 5-year agreement – with an option to extend for a further 3 years – means British Steel retains its position as principal supplier to the organisation which operates and maintains Britain’s rail infrastructure.
All the rails will be manufactured at British Steel’s 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: “We are 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 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 on Britain’s railways.”
Employees at British Steel’s site in Scunthorpe have been supplying Network Rail with track for more than 20 years, and in the last decade alone they have manufactured more than one million tonnes of rail for the UK’s network operator.
The rails in the new agreement will largely be used for maintenance and renewals and build on the UK’s reputation as having the safest railway in Europe. Among the products to be supplied are two long-life rail innovations, HP335 and Zinoco® – both of which reduce the need for maintenance and replacement works.
Craig Harvey said: “Sustainability is extremely important for our ourselves and Network Rail which is why we’re working together to overcome the challenges modern rail operators face and build the railways of the future right here in Britain.”
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. “Following our decisive action to step in and save steelmaking at Scunthorpe in April, this contract will give the sector the security to supply the steel we need for the infrastructure of the future, as part of our Plan for Change.”
Clive Berrington, Group Director Railway Business Services at Network Rail, said: “British Steel remain extremely competitive in the provision of rail and we are delighted that they will remain our main supplier in the years ahead.”
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