2 minute read - 17th June 2025
British Steel secures £500m contract with Network Rail
British Steel, the UK’s only manufacturer of rail, has secured a new £500m long-term supply contract with Network Rail. The five-year agreement, with an option to extend for a further three years, means British Steel retains its position as principal supplier to Network Rail, which operates and maintains Britain’s rail infrastructure, and provides guaranteed work for the plant for at least the next five years.
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 has secured a new £500m five-year contract with Network Rail to supply between 70,000 and 80,000 tonnes of rail track a year / Picture: British Steel
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British Steel’s site in Scunthorpe has been supplying Network Rail with track for more than 20 years, and in the last decade alone, it has 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. 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, commercial director for rail at British Steel, 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. Sustainability is extremely important for 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.”
In the last decade alone, British Steel has manufactured more than one million tonnes of rail for the UK’s network operator / Picture: British Steel
Heidi Alexander, transport secretary, added: “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.”
