British Steel has landed a £500 million, five-year contract to supply railway tracks to Network Rail, a deal that provides vital support for the company’s operations in Scunthorpe and helps

protect thousands of UK jobs.

Under the agreement, British Steel will produce more than 337,000 tonnes of rail, continuing its long-standing role in supplying the majority of the track used across Britain’s railway network. The Scunthorpe plant has been producing rail since 1865.

The contract, set to begin on 1 July, will see British Steel supply 80% of Network Rail’s track needs, with specialist products provided by other European manufacturers. The government called the deal a key step in reinforcing the UK's manufacturing base and boosting domestic supply chains.

British Steel hailed the contract as a “huge vote of confidence in UK workers and British industry.” Craig Harvey, the company’s commercial director for rail, said the agreement underlined British Steel’s “importance to the UK’s economy and infrastructure.”

The announcement follows a turbulent period for the company. In April, the UK government used emergency powers to take control of British Steel, amid fears that its Chinese owner, Jingye, was preparing to shut down Scunthorpe’s blast furnaces. Government officials warned that losing the blast furnaces would cripple the UK’s ability to produce virgin steel—steel made from raw materials, essential for major construction and infrastructure projects.

Scunthorpe’s plant, which employs around 2,700 people, is the UK’s last producer of virgin steel. Of its four blast furnaces—named Bess, Mary, Anne, and Victoria—only Bess and Anne remain operational.

Network Rail’s Clive Berrington said the company is “committed to buying British where it makes economic sense,” and confirmed British Steel will remain its main supplier. Transport Secretary Heidi Alexander said the deal “truly transforms the outlook for British Steel,” and is expected to visit the Scunthorpe site on Tuesday.

The new contract comes just days before the release of the government’s national infrastructure strategy, and amid ongoing uncertainty in the UK steel sector. The industry has faced setbacks including the planned closure of blast furnaces at Port Talbot and the impact of US tariffs on steel imports.

Although the UK was temporarily exempt from former President Trump’s steep tariff increases, a recent executive order signed by Trump did not include the removal of tariffs on UK steel, leaving British producers exposed to potential future trade barriers.

Meanwhile, the UK government has not ruled out fully nationalising British Steel but is exploring private investment opportunities to keep the country’s steelmaking capability alive—citing national security concerns. Photo by Alan Murray-Rust, Wikimedia commons.