The Government has announced a £500m deal between British Steel and Network Rail, which will support the Scunthorpe steelworks.
Transport Secretary Heidi Alexander said it "truly transforms the outlook for British Steel and its dedicated workforce in Scunthorpe". The five-year deal, which follows April's intervention by the Government to save the site, will see British Steel supply 337,000 tonnes of long and short rail track.
A further 80-90,000 tonnes is to be provided by other European manufacturers and deals are expected to be announced shortly, the Department for Transport (DfT) said. The contract starts on July 1 and will provide Network Rail with 80% of its rail needs.
The Scunthorpe plant has been producing rail for Britain’s railways since 1865 and Network Rail’s group director for railway business services, Clive Berrington said British Steel still remains "extremely competitive" in the rail steel market.
Ms Alexander added: "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 º£½ÇÊÓƵ 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 º£½ÇÊÓƵ’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."
Charlotte Brumpton-Childs, GMB national officer, said: "When British Steel was in crisis a few months ago, one of GMB's key asks to the Chancellor was to ensure Britain's railways were built with domestic steel. This is a crucial first step in securing the future of our steel industry.
"Ministers must now ensure other infrastructure projects follow suit to make sure British Steel has a constant flow of orders."
