Government rail contract secures thousands of British Steel jobs in Scunthorpe

Thousands of manufacturing jobs have been secured after a major rail steel contract was agreed between Network Rail and British Steel. 

The £500m, five-year deal will see British Steel supply more than 337,000 tonnes of rail track. 

This follows Government intervention in April to stop the Scunthorpe plant from closing, after its owner Jingye Group said it wanted to shut down the site’s blast furnaces.

Transport Secretary Heidi Alexander visited Scunthorpe to confirm the deal.

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.