British Steel has been awarded a major £500 million contract by Network Rail, reinforcing the long-standing partnership between the two organisations and securing thousands of skilled manufacturing jobs across the UK.
Under the five-year agreement, British Steel will supply over 337,000 tonnes of long and short rail for Britain’s railway network. This milestone deal follows the UK Government’s recent intervention to safeguard the future of British Steel’s Scunthorpe site through emergency legislation introduced just two months ago.
Transport Secretary Heidi Alexander visited the Scunthorpe steelworks on 17 June 2025 to announce the new contract—the first major public procurement since the government’s strategic intervention.
“This landmark contract transforms the outlook for British Steel and its dedicated workforce in Scunthorpe,” said Alexander. “It builds on a decades-long relationship with Network Rail and reflects our commitment to securing the long-term future of British steelmaking. By backing British Steel with meaningful public contracts, we are protecting thousands of skilled jobs and supporting the infrastructure of tomorrow.”
Business Secretary Jonathan Reynolds added:
“This is a significant vote of confidence in the UK’s steelmaking capabilities. Our decisive action in April prevented the closure of steelmaking in Scunthorpe, and this contract provides stability and a strong foundation for growth. It aligns with our broader Plan for Change—securing vital industries and investing in the UK’s industrial future.”
In addition to British Steel’s supply of 337,000 tonnes of rail, an additional 80,000 to 90,000 tonnes will be sourced from other European manufacturers, with further contracts expected to be announced in the coming months.
British Steel’s Scunthorpe plant has been producing rail for the UK since 1865. This new agreement continues that legacy and reinforces its strategic role in supporting the nation’s transport infrastructure.
Clive Berrington, Network Rail’s Group Director for Railway Business Services, said:
“British Steel continues to demonstrate exceptional competitiveness and reliability. We are pleased to extend our partnership and to ensure continuity in the supply of high-quality rail for Britain’s railway network.”
Craig Harvey, British Steel’s Commercial Director for Rail, commented:
“We are proud to extend our long-standing strategic partnership with Network Rail. This contract is a powerful endorsement of British industry and workforce, and it underlines our critical role in keeping the country moving through safe and efficient rail infrastructure.”
British Steel is one of the leading steel manufacturers in Europe, producing around 3 million tonnes of quality steel products every year.
British Steel Rail Contract – A New Dawn?
In March 2020, British Steel was bought by Jingye Group, a leading Chinese multi-industrial company specialising in iron and steel manufacturing but the government took control of British Steel’s operations in April with emergency legislation after it became concerned that Jingye Group was planning to let blast furnaces at Scunthorpe cool, in favour of protecting its own steel exports in the wake of the US Tarif Trade War. That would have led to 2,700 immediate job cuts as well as the symbolic loss of Britain’s ability to make steel from iron ore.
Whilst Jingye Group are still the owners on paper and are attempting try and recover hundreds of millions of pounds of loans from the company of the government ceasing control of British Steel, Business Secretary Jonathan Reynolds said that the Government was “unapologetic in our support for the UK steel sector – it underpins Britain’s industrial strength, our national security, and our status as a global power”.
The bulk of those loan debts, £434m, is owed to Jingye’s Chinese subsidiaries with another €312.5m (£266m) which is owed to Jingye’s British holding company, Jingye Steel (UK) Holding Ltd.
In newly released accounts for the UK company, Jingye said it is “currently assessing the recoverability of these balances and the potential for a commercial settlement”.
The new British Steel rail contract will certainly go down as a win for the government supporting the British steel industry but there is still much uncertainty in the global steel market yet to play out.
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