£35m Rail Contract Boost for British Steel
Key Takeaways:
- £35m export deal strengthens British Steel — The new rail contract for Turkey’s high-speed network reinforces British Steel’s position as a competitive global supplier and supports job creation at the Scunthorpe plant.
- Government intervention is translating into commercial wins — Following emergency state control earlier this year, British Steel has secured major domestic and international contracts, including backing from UK Export Finance.
- Rail infrastructure is central to growth and decarbonisation — Supplying high-speed rail projects abroad highlights the UK’s engineering expertise while contributing to lower-carbon transport and long-term industrial resilience.
A new £35m rail supply contract for British Steel marks a significant vote of confidence in the UK’s heavy industry and export capability, as the government continues to intervene decisively to secure strategic manufacturing jobs. The deal, which will see British Steel provide rail products for Turkey’s expanding high-speed rail network, is set to be announced by Prime Minister Keir Starmer at the G20 summit in Johannesburg this weekend.
The agreement is expected to create new jobs at British Steel’s flagship Scunthorpe plant and reinforces the company’s growing role in international rail infrastructure projects. It also forms part of a broader package of more than £400m in export deals that ministers say will open new markets and opportunities for British firms overseas.
A strategic export win at a critical moment
The £35m contract will involve the manufacture and supply of specialist rail products for Turkey’s high-speed rail network, one of the most ambitious transport infrastructure programmes currently under way in the region. According to government sources, the deal builds on an existing commercial relationship between British Steel and Turkish rail operators, demonstrating the UK company’s ability to compete internationally on quality, sustainability, and scale.
Lisa Coulson, British Steel’s chief commercial officer, welcomed the announcement, stressing the tangible impact on the workforce in Lincolnshire.
“We’re extremely grateful for the government’s support and are confident our partnership with the operators will shortly secure additional orders and create new jobs in Scunthorpe,” she said.
The timing of the deal is particularly significant. Earlier this year, British Steel faced the very real prospect of its Scunthorpe plant closing, threatening thousands of jobs and the future of primary steelmaking in the UK. The new export order signals renewed stability and momentum for the business following unprecedented government intervention.
Building on existing success in Turkey
This latest contract is not British Steel’s first major contribution to Turkey’s rail ambitions. Last year, the company announced a similar-sized agreement to supply rail products for a high-speed line in southern Turkey, connecting the port city of Mersin with Adana, Osmaniye, and Gaziantep.
Ms Coulson highlighted the cumulative impact of these projects:
“We are proud to have already delivered £30m of our rail products into high-speed projects to help decarbonise travel in Turkey and are delighted to be building upon this with a new supply agreement.”
High-speed rail is widely seen as a cornerstone of low-carbon transport strategies, offering a viable alternative to short-haul flights and car travel. By supplying advanced rail systems to overseas projects, British Steel is positioning itself at the intersection of infrastructure development and climate objectives.
Government backing and export finance
A key factor behind the deal has been the backing of UK Export Finance, which provides financial support and guarantees to help British companies win international contracts. According to British Steel, securing these “prestigious contracts” would not have been possible without coordinated government assistance.
“Securing these prestigious contracts, with the support of UK Export Finance, was a major achievement and underlines British Steel’s ability to build the sustainable track systems of the future,” Ms Coulson added.
Ministers have increasingly framed export finance as an industrial policy tool, particularly in sectors deemed strategically important, such as steel, energy, defence, and advanced manufacturing.
Emergency intervention to save Scunthorpe
The export success follows dramatic events earlier in the year, when the government took control of British Steel’s Scunthorpe operations to prevent an immediate shutdown. In April, Parliament rushed through the Steel Industry (Special Measures) Act in a single day, granting ministers emergency powers to direct the company’s board and staff.
The move was highly unusual but reflected the plant’s national importance. Scunthorpe is the UK’s last remaining site capable of producing virgin steel at scale, a capability viewed as critical for economic resilience, defence, and major infrastructure projects.
At the time, ministers argued that allowing the plant to close would have left the UK dangerously exposed to global supply shocks and foreign dependency. The intervention has since been followed by a series of commercial wins, suggesting that the immediate crisis has been stabilised.
Domestic confidence: Network Rail deal
In addition to overseas exports, British Steel has also secured major domestic work. The company recently announced a £500m contract to manufacture train tracks for Network Rail, reinforcing its central role in maintaining and upgrading Britain’s rail network.
Together, the Network Rail agreement and the new Turkish export contract provide a more diversified order book, reducing reliance on any single market and supporting longer-term workforce planning at Scunthorpe.
Industry analysts note that this blend of domestic infrastructure investment and international exports is essential for the long-term viability of UK steelmaking.
A political statement on growth and industry
Speaking ahead of the G20 summit, the prime minister framed the deal as emblematic of the government’s growth strategy and its renewed emphasis on industrial capability.
“The UK is a world leader in engineering, from steel welders in Scunthorpe to technicians in Derby,” Sir Keir said. “British workers are powering the world through their skill and profession.
Working with international partners to deliver jobs and opportunity at home is a one-way ticket to growth.”
The announcement is likely to be positioned as evidence that active government involvement—through ownership, export finance, and diplomacy—can translate into tangible economic outcomes, particularly in regions that have experienced decades of industrial decline.
What this means for Scunthorpe and the wider region
For Scunthorpe and North Lincolnshire, the implications extend beyond headline contract values. Each major order supports not only direct employment at the steelworks but also a wider supply chain, from logistics and engineering services to maintenance and specialist manufacturing.
Local leaders have repeatedly warned that the loss of the steelworks would have had devastating economic and social consequences. The combination of government intervention, domestic contracts, and export growth offers a more optimistic outlook, at least in the medium term.
However, challenges remain. The global steel market is fiercely competitive, energy costs in the UK remain high, and the transition to lower-carbon steelmaking will require substantial further investment. While the £35m Turkish contract is a boost, it is not a complete solution.
Looking ahead: sustainable steel and global demand
British Steel has increasingly emphasised sustainability and innovation as part of its pitch to international customers. High-speed rail projects, in particular, allow the company to align its products with global decarbonisation goals while competing on technical performance.
As countries around the world expand rail infrastructure to meet climate targets and growing urban populations, demand for high-quality rail products is expected to remain strong. The challenge for British Steel will be to convert headline deals into a steady pipeline of orders while continuing to modernise its operations.
The government, meanwhile, faces ongoing questions about the long-term structure of its involvement in the company—whether control will remain temporary or evolve into a more permanent model of strategic partnership.
A cautious but meaningful step forward
The £35m rail contract for Turkey will not, on its own, resolve every issue facing British Steel or the UK steel industry more broadly. But it represents a meaningful step forward at a critical juncture—demonstrating that, with targeted support and international engagement, British manufacturing can still compete on the global stage.
For the workers in Scunthorpe, the announcement brings something that has been in short supply in recent years: a measure of confidence that their skills, plant, and products continue to have a future—both at home and abroad.
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