British Steel have obtained a five-year contract worth £500m to supply train tracks for Network rail – a move that has saved thousands of job cuts.
According to the contract, which is due to commence on 1st July 2025, British Steel will supply a minimum of 337,000 tonnes of track – a project that is said to keep the organisation busy for the next five years.
News of the contract comes after the UK Government had to pass an emergency legislation in April to prevent British Steel from going into administration, which would have resulted in thousands of job losses.
Transport secretary Heidi Alexander said the new contract will ‘truly transform the outlook for British Steel and its dedicated workforce.
‘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,’ Heidi continued.
As well as helping British Steel, the contract covers 80% of Network Rail’s needs. The infrastructure manager will likewise award smaller contracts for European manufacturers to supply a further 80,000-90,000 tonnes of specialist rail products.
Clive Berrington, group director for railway business services at Network Rail, said: ‘We are committed to buying British where it makes economic sense to do so and British Steel remain extremely competitive in the provision of rail and will remain our main supplier in the years ahead.’
Photo by William Verhagen
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