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Sat September 18 2021

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British Steel buoyed by £200m Network Rail deal

20 Sep 18 British Steel has been granted a two-year extension to its Network Rail supply contract in a deal worth £200m.

The new contract is for the supply of approximately 200,000 tonnes (4,000 km) of rail, mainly for renewals and maintenance, and will run from March 2019 to March 2021.

British Steel’s long rail plant in Scunthorpe has long supplied the rail for Britain’s railway. It is building a new facility at its Scunthorpe site to increase its capability to support Network Rail’s requirements for new rail types, such as Zinoco coated rails are used in areas where corrosion can be an issue, including along coasts, in wet tunnels and on level crossings (Zinoco = 'zinc no corrosion').

British Steel chief marketing officer Ron Deelen said: “This is excellent news, not only for British Steel but the millions of people who use the UK’s rail network. During the course of the last five years we’ve worked extremely closely with Network Rail, ensuring the on-time delivery of half-a-million tonnes of high quality rails in lengths of up to 216 metres.

“Together we’ve helped find solutions to the challenges they face, enabling us to develop and install new products which reduce the need for costly and time-consuming maintenance and replacement works. This allows more traffic with less rail maintenance – major benefits for passengers and freight operators, and provides Network Rail with excellent value for money.

“We enjoy an excellent partnership with Network Rail and over the course of the current contract, and the new one, we look forward to further strengthening that and ensuring Britain’s railways remain on the right track.”

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