British Steel has secured a £500 million contract with Network Rail to supply up to 80,000 tonnes of track annually, reinforcing the future of its Scunthorpe steelworks.
The agreement, starting 1 July with an option to extend by three years, will cover around 80% of Network Rail’s rail needs.
All production will take place in Scunthorpe, which has long been central to the UK’s rail manufacturing.
The deal follows government intervention earlier this year, when British Steel’s Chinese owners halted operations at its blast furnaces.
Though not fully nationalised, the state stepped in to prevent closure. Ministers hailed the agreement as vital support for 2,700 jobs and a vote of confidence in British steelmaking.