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Manufacturing

Multi-million pound investments to follow British Steel Network Rail contract win

Two year deal will see expansion of Scunthorpe site for storage and delivery services

British Steel is to invest in rail handling facilities and support for Network Rail's delivery of its products after securing a two-year extension to its long-standing supply deal.(Image: Steve Morgan)

Two multi-million pound investments will be delivered by British Steel after it won a major supply contract extension with Network Rail.

A new storage facility for long-length rails and a dedicated train servicing facility for the delivery transport will be built on the Scunthorpe site, after the two-year bolt-on deal was secured.

It means that by the time the latest contract comes to an end in 2024, the North Lincolnshire team will have supplied more than one million tonnes of rail in a decade - enough to cover 19,000 km.

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The deal sees British Steel retain its position as principal supplier to the company which operates and maintains Britain’s rail infrastructure.

British Steel’s commercial director for rail, Craig Harvey, said: “We’re extremely proud of our partnership with Network Rail and delighted to have extended our contract with them.

“This agreement is testament to the high-quality products and services our people deliver, and we look forward to continuing our work with Network Rail to ensure millions of passengers and freight operators enjoy safe, enjoyable and timely journeys.”

Work will start shortly on the new storage - capable of holding rails 108m in length - and servicing facilities. It comes as 80 vacancies at apprentice and graduate level have been created.