British Steel has secured a new £500 million supply contract with Network Rail. The nine-figure agreement will see British Steel retain its role as principal supplier to the network operator over the next five years, with an option to extend it for a further three.
The contract, which starts on 1 July according to the BBC, will see British Steel deliver between 70kt and 80kt of rail a year. Among the products to be supplied are British Steel’s HP335 and Zinoco, which both help to decrease the need for maintenance works.
Craig Harvey, commercial director for Rail at British Steel, said: “We are exceptionally proud to be extending our long-term strategic partnership with Network Rail.
Harvey added: "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.”
“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."
Heidi Alexander, Transport Secretary, British Government
British Steel and Network Rail enjoy a long working relationship, with the steel company manufacturing more than 1Mt of rail for the UK’s network operator over the last decade. More recently, British Steel opened a £10 million rail stocking facility at its Scunthorpe headquarters last year.
Transport Secretary, Heidi Alexander commented: “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.”
