Feb 17 • 22:00 UTC 🇬🇧 UK Guardian

Boost to British Steel as Turkey places high-speed rail order

British Steel has won a significant contract to supply rail for a high-speed railway in Turkey, amidst ongoing concerns regarding the future of its operations in the UK.

British Steel has recently secured a substantial order to supply 36,000 tonnes of rail to ERG International Group for the construction of a new high-speed electric railway in Turkey. The deal, valued at tens of millions of pounds, aims to support the development of a 599-kilometer railway line that will link Turkey’s capital, Ankara, to the port city of İzmir. This project is expected not only to reduce travel time but also to contribute to lowering carbon emissions in the region. This marks a significant opportunity for British Steel, especially considering its current struggles and the precarious future of its operations in Scunthorpe, where it employs approximately 3,500 workers.

The agreement is touted as a pivotal commercial boost for British Steel, which has faced ongoing financial difficulties and uncertainty about its long-term viability. With the contract supported by UK Export Finance, the company has also announced the creation of 23 new roles at its Scunthorpe site. This is noteworthy as it allows British Steel to resume round-the-clock rail manufacturing for the first time in over a decade, pointing towards a potential resurgence in its manufacturing capacity and capability.

Despite this optimistic development, concerns about the long-term sustainability of the Scunthorpe site linger. The plant, which is crucial to the local economy, continues to be under scrutiny due to its recent financial losses. Stakeholders will be watching closely to see if this new contract can lead to a more stable future for British Steel and its workforce, or if it is merely a temporary respite in a challenging industrial landscape.

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