Network Rail Secures £500 Million Five-Year Rail Supply Contract with British Steel

Network Rail has signed a £500 million, five-year contract with British Steel to supply more than 370,000 tonnes of rail, securing about 80% of Network Rail's rail needs over the period and safeguarding thousands of jobs at British Steel's Scunthorpe plant. This agreement follows the UK government's intervention to prevent the closure of the Scunthorpe blast furnaces, which are crucial for domestic rail manufacturing, with the contract reinforcing British Steel's role as Network Rail's principal rail supplier. The deal includes the delivery of innovative long-life rail products aimed at reducing maintenance and replacement work, contributing to the UK's reputation for having the safest railway in Europe. While British Steel will supply the majority of rail, Network Rail will also award smaller contracts to European manufacturers for specialized rail products to ensure supply security. The contract reflects the government's commitment to supporting British manufacturing and industrial heartlands as part of its Plan for Change economic strategy. However, some criticism has emerged as Network Rail has invited international competition for other steel contracts, prompting calls for increased prioritization of UK steel suppliers across public sector procurement.