British Steel has secured a landmark £500 million contract to supply rail tracks across the United Kingdom, marking one of the company’s most significant infrastructure deals in recent years and a major boost for domestic manufacturing.
The multi-year agreement, awarded by Network Rail, will see British Steel provide over one million tonnes of rail to support vital upgrades and maintenance across the national rail network. The deal is expected to span at least five years, with the steel produced primarily at the company’s flagship site in Scunthorpe.
“This contract is a vote of confidence in British manufacturing and in our people’s expertise,” said British Steel CEO Allan Bell. “Our rail products are world-class, and we’re proud to play a central role in modernising the UK’s transport infrastructure.”
The announcement comes at a critical time for the steelmaker, which has faced economic pressures amid global market volatility and rising energy costs. The deal is expected to safeguard hundreds of jobs in northern England and inject renewed optimism into the region’s industrial sector.
Network Rail said the contract reflects its commitment to sourcing high-quality, sustainable materials from UK-based suppliers. “British Steel’s proven track record and innovation in low-carbon rail products make them a key partner in delivering a safer, more reliable railway for passengers and freight,” said Network Rail procurement director Sarah Newby.
The new rail products will include a mix of standard and premium-grade steel, tailored to meet the demands of high-speed lines, freight routes, and urban transport systems. British Steel has also pledged to integrate greener manufacturing processes as part of the agreement, aligning with the UK government’s push for net-zero emissions in infrastructure projects.
Industry analysts describe the deal as a “turning point” for British Steel, which has undergone significant restructuring and investment in recent years, including a transition toward electric arc furnace technology.
“This contract not only stabilises the business but positions it for future growth in the decarbonised economy,” said Martin Duggan, an analyst at UK Metals Insight.
The first deliveries under the contract are expected to begin later this summer, supporting major rail projects across the UK through the end of the decade.