'Jobs secured' in £500 million British Steel deal

A steel firm has landed a £500 million rail contract bosses say has “secured thousands of jobs”.

British Steel will supply more than 337,000 tonnes of track to Network Rail from its Scunthorpe plant.

Officials say the “landmark” five-year deal – which comes after the Government stepped in to maintain operations at the Lincolnshire works – will help “cement the company's future”.

The contract, set to start on July 1, forms part of Network Rail’s supply contracts for the provision of almost 450,000 tonnes of rail for the next five years.

The operator is set to award smaller contracts to European manufacturers, for the supply of specialist rail products alongside British Steel.

Transport Secretary Heidi Alexander said: “This landmark contract truly transforms the outlook for British Steel and its dedicated workforce in Scunthorpe.

"After taking urgent action to 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.”

Craig Harvey, British Steel commercial director for rail, added: “The contract represents a huge vote of confidence in UK workers and British industry.

“It underpins the vital role we play in ensuring millions of passengers and freight operators enjoy safe, enjoyable and timely journeys on Britain’s railways.”

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